Platinum Holds Near 2-Month High

Platinum futures held near $1,730 per ounce after reaching a two-month high, as traders assessed the outlook for demand. Rising hybrid vehicle production has provided near-term support for autocatalyst consumption, although markets remain cautious about the broader shift toward electric vehicles, which recorded a fifth consecutive monthly increase in July. Meanwhile, uncertainty over shipments through the Strait of Hormuz kept industrial buyers cautious. On the supply side, concerns over power disruptions and maintenance bottlenecks at South African mines continued to underpin prices, with the platinum market expected to remain in deficit. Additional support came from plans by the world’s largest jeweler to replace some sterling-silver jewelry with platinum-plated alternatives. Meanwhile, AI and data-center expansion are emerging as potential new sources of demand, with South Africa’s Valterra Platinum estimating AI-related demand could grow fivefold by 2030.

Platinum futures rose above $1,770 an ounce, reaching a fresh eight-week high and tracking broader strength across precious metals after a subdued US inflation report. US consumer inflation slowed for a second consecutive month to 3.4% in July, while rising just 0.1% from the previous month. The data reduced expectations of tighter Fed policy at its September meeting, supporting non-yielding assets such as platinum. Lower oil prices added support as markets weighed the prospects of a deal to reopen the Strait of Hormuz, potentially easing energy supply and inflation concerns. Meanwhile, AI and data-center expansion are emerging as potential new sources of platinum-group metals demand. Valterra Platinum estimates AI-related PGM demand at 200,000–400,000 ounces annually and sees it potentially growing fivefold by 2030. Still, the platinum market is expected to remain in deficit due to constrained mine output, particularly in South Africa, although higher prices could encourage recycling.

Platinum futures rose above $1,750 an ounce, hitting an eight-week high and tracking broader strength across the precious metals complex. Investment demand for precious metals improved as Chinese institutional investors increased bullion holdings amid heightened market volatility, with gold-backed ETF in China recording their longest streak of inflows in months. Meanwhile, AI and data-center expansion are emerging as potential new sources of future platinum-group metals demand. In July, Valterra Platinum said it estimated current AI-related PGM demand at 200,000–400,000 ounces annually and that it could grow fivefold by 2030, citing PGMs' electrical and thermal properties as relevant to AI infrastructure. Still, the World Platinum Investment Council expects platinum markets to remain in deficit over the longer term due to constrained mine output, particularly in South Africa, although higher prices could encourage more recycling and eventually weigh on some demand.