Platinum Trades Near 7-Month Lows

Platinum futures traded around $1,600 an ounce, hovering near their lowest level since November 2025, as a stronger US dollar outweighed easing inflation concerns amid improving global energy supply. Oil prices returned near pre-war levels as crude shipments through the Strait of Hormuz continued to recover, while signs of progress in US-Iran peace talks further eased concerns over potential supply disruptions. However, the US dollar remained broadly firm, making dollar-denominated commodities such as platinum more expensive for buyers of other currencies. Despite Fed Chair Kevin Warsh saying inflation expectations had eased over the past month, markets continued to price in more than a 60% chance of a September rate hike as he reaffirmed the Fed's commitment to restoring price stability, while strong US data underscored the economy’s resilience. Meanwhile, the platinum market remains structurally tight, as output from major producers South Africa and Russia remains constrained.

Platinum futures fell to near $1,550 an ounce, hitting a fresh seven-month low and posting steep second straight monthly and quarterly losses as Middle East uncertainties and wagers of US interest rate hikes dampened demand. The Federal Reserve have adopted a more hawkish stance this month, while strong US economic data underscored the economy’s resilience, prompting markets to price in at least one hike this year, coming as early as September. This makes the dollar stronger, making dollar-denominated commodities more expensive for buyers of other currencies. Meanwhile, persistent concerns that disruptions to energy flows through the Strait of Hormuz could fuel global inflation have also reinforced expectations that interest rates will stay higher for longer, weighing on non-yielding metals. While US and Iran resumed their peace negotiations, a major sticking point remains after Tehran reiterated its plan to oversee traffic through the Gulf even if Oman decides not to take part.

Platinum futures traded around $1,600 an ounce, hovering near their lowest level since November 2025 as precious metals broadly weakened after renewed clashes in the Middle East reignited inflation concerns. Although the US and Iran agreed to pause further attacks after recent exchange of strikes around the Strait of Hormuz, oil prices climbed as the latest escalation disrupted the recovery in oil shipments through the key waterway that had followed an earlier interim deal. The US dollar also remained broadly stronger, making dollar-denominated commodities such as platinum more expensive for buyers of other currencies. Markets continue to anticipate that the Federal Reserve will raise rates this year after a hawkish tone from new Chair Kevin Warsh and upward revisions to inflation forecasts. Meanwhile, the platinum market remains structurally tight as output from major producers South Africa and Russia remains constrained by aging mines, high costs, and sanctions-related disruptions.