Platinum Sideways Near Multi-Month Lows

Platinum futures hovered around $1,630 an ounce, trading sideways near their lowest level since November 2025, pressured by a stronger US dollar that continued to weigh on precious metals. However, losses were limited after signs of a cooling US labor market reduced expectations of an imminent Federal Reserve rate hike. June payrolls showed a marked slowdown in job growth, while downward revisions to the previous two months reinforced expectations that the Fed may delay further tightening. Investors now await the Fed's meeting minutes, with markets pricing just over a 50% chance of a September rate hike. Meanwhile, lower oil prices, driven by recovering flows through the Strait of Hormuz and prospects of higher OPEC+ supply, also eased inflation concerns. On the supply side, South African mine output remained constrained by power disruptions, while Russia's mine expansion has yet to significantly ease the market's structural supply deficit and tight above-ground inventories.

Platinum futures rose to around $1,660 an ounce, moving away from the seven-month low reached on June 30, as a weaker US dollar outweighed easing geopolitical uncertainty. Oil prices continued to decline as tanker traffic normalized amid ongoing peace talks, although uncertainty over a lasting agreement persisted. Meanwhile, softer-than-expected US payrolls data and last week's inflation reading reduced expectations of further rate hikes from the Federal Reserve this year, weighing on the dollar and boosting the appeal of dollar-denominated metals. On the supply side, South Africa's platinum output remained constrained after criminal activity disrupted power supplies to major mining operations. In contrast, Russia's Nornickel has begun expanding its mines, aiming to extend production through at least 2048.

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.