Platinum Holds Near 7-Week High

Platinum futures held near $1,750 per ounce, hovering around a seven-week high as weaker-than-expected US jobs data reduced expectations of further Federal Reserve tightening, while Middle East tensions capped gains. US nonfarm payrolls unexpectedly declined in July, prompting markets to lower the probability of a near-term Fed rate hike to 43.9% from 57% before the report. However, President Donald Trump stated he believed the war would end soon, while attacks by Iran and Iran-backed Houthi militants continued to fuel concerns over energy supply disruptions and inflation. Meanwhile, South Africa's Valterra Platinum, the world's largest primary platinum producer, reported a sharp rise in interim profit, supported by higher platinum-group metal prices. The company also expects AI-related infrastructure to drive demand higher, while the platinum market is projected to remain in supply deficit for another year.

Platinum futures held above $1,750 an ounce, near a seven-week high, supported by optimism over a deal to partially reopen the Strait of Hormuz. However, uncertainty lingered as Tehran seeks to restrict US and Israeli vessels from using the route, while reports of renewed Iranian attacks in the critical waterway lifted oil prices, reviving inflation concerns and higher-for-longer interest rates. Investors now await US nonfarm payrolls report for fresh clues on the Federal Reserve's policy path. Meanwhile, South African producer Valterra Platinum, the world's largest primary platinum miner with roughly 38% of global mined supply, reported a sharp increase in interim profit, driven by stronger platinum-group metal prices. The company also said it expects demand from AI-related infrastructure to grow significantly in the coming years, while broader market fundamentals remained supportive, with the platinum market still projected to post another annual supply deficit.

Platinum futures climbed above $1,700 per ounce, reaching their highest level since mid-June as gains across precious metals were supported by diplomatic efforts to ease US-Iran tensions. US Treasury Secretary Scott Bessent said a deal to reopen the Strait of Hormuz could be reached as soon as today or tomorrow, while Qatari Foreign Ministry spokesperson Majed al-Ansari said negotiations remain ongoing, with de-escalation and reopening the vital waterway as the top priorities. The developments prompted markets to lower expectations for a September Fed rate hike, as easing oil prices could reduce inflationary pressures. Investors are now awaiting upcoming US labor market data for further clues on the Fed's policy outlook.