Platinum Hits 7-Month Low

Platinum futures fell to below $1,650 an ounce, hitting the lowest level since November 2025, as a stronger US dollar outweighed progress in US-Iran talks that helped ease inflation concerns. The greenback remained firm as markets continue to anticipate that the Federal Reserve will raise the fed funds rate this year after a hawkish tone from new Chair Kevin Warsh last week and upward revisions to inflation forecasts. A stronger dollar typically weighs on non-yielding assets by making it more expensive for foreign buyers. Meanwhile, early signs of progress in ongoing US-Iran peace negotiations helped soften inflation concerns and ease pressure on central banks to tighten policy. Both sides recently agreed on a 60-day roadmap toward a final deal, and now Washington has issued Tehran a license to sell oil on international markets, fueling expectations of a faster recovery in global supply. Shipping activity through the Strait of Hormuz has also increased, pushing oil prices lower.

Platinum futures traded below $1,700 an ounce, hovering at the lowest since December 2025, 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