Platinum Hits 7-Month Low

Platinum futures fell around $1,660 an ounce, hitting a seven-month low as uncertainty over US–Iran peace negotiations kept inflation risks elevated. The high-level talks had a shaky start, but ended with signs of progress after the US and Iran agreed on a 60-day roadmap toward a final deal. However, doubts over the viability of the agreement persisted as both sides recently exchanged threats over the conflict in Lebanon, with Tehran claiming it had once again closed the Strait of Hormuz. Additionally, platinum was weighed down by a stronger US dollar after the Federal Reserve left interest rates unchanged last week and adopted a more hawkish tone. Nine Fed officials now expect at least one rate increase this year, with markets pricing in a potential hike as soon as September. The platinum market also remains structurally tight, as output from major producers South Africa and Russia remains constrained by aging mines, high costs, and sanctions-related disruptions.

Platinum decreased 5% to 1703.2 USD/t.oz

Platinum futures dropped below $1,700 an ounce, moving back toward six-month lows, pressured by a stronger US dollar after the Federal Reserve signaled growing support for interest rate hikes this year. While the central bank left its policy rate unchanged, nine Fed officials now expect a rate hike by the end of 2026 amid rising inflation concerns. New Fed Chair Kevin Warsh refrained from providing guidance on the next policy move but stressed that inflation has remained above the central bank’s target and reiterated the Fed’s commitment to restoring price stability. Meanwhile, oil prices declined further after an interim US-Iran agreement allowed oil tankers to resume passage through the Strait of Hormuz, helping soften inflation expectations and easing pressure on central banks to tighten policy. The platinum market also remains structurally tight, as output from major producers South Africa and Russia remains constrained by aging mines, high costs, and sanctions-related disruptions.