Platinum Steadies Near Eight-Month Low

Platinum futures fell below $1,600 an ounce, near late-November lows as the ongoing US-Iran conflict heightened the risk of energy-driven inflation and higher interest rates. The resulting surge in oil prices from the ongoing conflict pushed US Treasury yields higher and prompted markets to increase the odds of a Federal Reserve rate hike in September to about 55%, weighing on non-yielding metals such as platinum. Meanwhile, Sibanye-Stillwater plans to advance seven PGM mining projects, although production is not expected to begin until next year. The World Platinum Investment Council expects a fourth consecutive market deficit in 2026, as constrained mine supply, elevated energy costs, and higher winter electricity tariffs continue to pressure producers' margins. China's industrial policies supporting AI, electric vehicles, and clean energy, together with the launch of the first platinum investment bar series, are also expected to support long-term platinum consumption.

Platinum futures traded near $1,610 per ounce, stabilizing around their lowest since November, as traders weighed the metal's supply and demand outlook against renewed tensions in the Middle East. Rising inflation concerns prompted markets to price in at least one Federal Reserve rate hike by year-end, weighing on demand for non-yielding metals such as platinum. Meanwhile, Sibanye-Stillwater plans to advance seven PGM mining projects, although production is not expected to begin until next year. However, the World Platinum Investment Council expects a fourth consecutive market deficit in 2026, as constrained mine supply, elevated energy costs, and higher winter electricity tariffs continue to pressure producers' margins. On the demand side, China's industrial policies supporting AI, electric vehicles, and clean energy, together with the launch of the first platinum investment bar series by Caibai and the WPIC, are expected to support long-term platinum consumption.

Platinum futures fell further below $1,600 an ounce, moving near late-November lows as escalating attacks in the Middle East kept inflation concerns in focus. Hostilities between the US and Iran have expanded beyond military targets to critical infrastructure, while Tehran declared its ceasefire with the US had effectively collapsed. Shipping through the Strait of Hormuz has largely come to a halt, driving oil prices sharply higher and raising the risk that central banks may tighten policy to contain inflation. Meanwhile, softer-than-expected US consumer and producer inflation data prompted markets to scale back expectations of a near-term Fed Reserve rate hike, offering some support to non-yielding assets such as platinum. The metal also remained underpinned by a tight supply outlook, with the World Platinum Investment Council continuing to forecast a fourth consecutive market deficit in 2026 as demand outpaces supply and above-ground inventories remain near historically low levels.