Platinum Rises Toward Multi-Month Highs

Platinum futures rose above $1,860 an ounce, moving back toward multi-month highs as expectations for stronger industrial demand and constrained mine supply continued to support the market. Industrial demand is forecast to rise 9% this year, supported by a sharp recovery in platinum use in the glass industry, while mine supply remains constrained, particularly in major producer South Africa. Platinum has gained around 6% over the past month despite remaining well below its record high of $2,919 reached in January. However, the longer-term outlook has become less supportive, with the World Platinum Investment Council now expecting the global market to swing to a surplus of 265,000 ounces in 2026, reversing its earlier forecast for a 297,000-ounce deficit. The shift reflects heavy ETF outflows and weaker demand, which fell 16% year-on-year in Q2 to 1.7 million ounces. Jewelry demand plunged 32%, while auto demand fell 6%, with Chinese platinum jewelry fabrication tumbling 76%.

Platinum futures traded above $1,840 an ounce, after reaching its lowest level in two weeks, amid prospects of increased industrial demand. Hybrid vehicle demand remains resilient as volatile fuel prices dampen demand for internal-combustion-engine vehicles. The European Union is facing pressure to include tariffs on hybrid vehicles from Chinese manufacturers in the existing duties on Chinese fully electric vehicles. Additionally, a coalition of major US automakers, including General Motors, Toyota, and Volkswagen, urged lawmakers to permanently ban Chinese vehicles, as Chinese automakers are rapidly gaining market share across major economies, which could support demand for platinum used in catalytic converters. In the near-term, however, the metal remains influenced by investment flows following the latest US payrolls data, which reflected a resilient labor market, boosting expectations of a Fed rate hike and reducing demand for non-yielding platinum.

Platinum futures traded above $1,800 an ounce after climbing from a two-week low, as a weaker US dollar boosted demand for precious metals. The rally followed dovish comments from Federal Reserve Governor Christopher Waller, who said he would favor keeping interest rates unchanged if inflation continues to ease, prompting investors to scale back bets on a Fed hike this month. Traders now await US jobs data for further clues on the Federal Reserve’s rate outlook. Still, renewed fighting in the Gulf and higher oil prices kept inflation concerns in focus, potentially complicating the Fed’s policy path. Meanwhile, platinum’s industrial demand is expected to rise 9% this year to 2.24 million ounces, according to the World Platinum Investment Council. Valterra Platinum highlighted China’s rapidly expanding hydrogen-truck sector as a potential new demand catalyst, estimating around 6 million ounces of additional global demand if hydrogen trucks reach a 20% share of the global fleet.