Platinum Hits 11-Week High

Platinum futures held above $1,800 an ounce, halting its recent gains as easing inflationary pressures from retreating oil prices offset a firmer US dollar. Oil prices continued to decline amid signs of increased diplomatic efforts to resolve the conflict and restore energy flows in the Middle East. This eased concerns over inflation and the prospect of further interest rate hikes, lowering the opportunity cost of holding platinum. Meanwhile, hawkish comments from Federal Reserve officials reinforced expectations for a tighter US interest-rate outlook following last week’s first rate hike in three years. Underlying fundamentals remained supportive, with WPIC forecasting a 5% increase in industrial demand in 2026, partly driven by AI infrastructure, although automotive demand is forecast to fall 4%. Despite a projected 265k oz surplus in 2026, WPIC also expects above-ground stocks to remain at only about 3.4 months of global demand, following the large deficits of previous years.

Platinum futures rose above $1,800 an ounce, advancing for a third consecutive session as retreating oil prices lifted demand for non-yielding metals. Oil prices continued to fall amid signs of increased diplomatic efforts to resolve the conflict and restore energy flows in the Middle East. This eased concerns over inflation and the prospect of further interest rate hikes, lowering the opportunity cost of holding platinum. Investors now assessed the Federal Reserve’s policy outlook, with several officials appearing this week after the central bank raised rates last week for the first time in three years. Meanwhile, platinum supply remains structurally constrained, with WPIC expecting deficits to average 331,000 oz annually from 2026-2030, despite a moderate surplus in 2026 forecast. Industrial demand remains supportive, including applications in emissions control, hydrogen and emerging AI technologies, though the shift toward BEVs poses a long-term headwind for autocatalyst demand.

Platinum futures held above $1,780 an ounce but remained near two-week lows as the Federal Reserve’s hawkish rate hike offset easing pressure from retreating oil prices. The Fed’s 25bp hike, its first since 2023, and projections pointing to another increase this year raised the opportunity cost of holding a non-yielding asset such as platinum. However, oil prices eased as concerns over Middle East supply disruptions moderated, with Saudi Arabia expected to restore pipeline capacity and renewed diplomatic efforts to end the conflict. Still, crude remains above $100 a barrel, keeping inflation risks in focus. Meanwhile, platinum supply remains structurally constrained, with WPIC expecting deficits to average 331,000 oz annually from 2026-2030, despite a moderate surplus in 2026 forecast. Industrial demand remains supportive, including applications in emissions control, hydrogen and emerging AI technologies, though the shift toward BEVs poses a long-term headwind for autocatalyst demand.