Platinum Hits 14-week High

Platinum futures plunged below $1,500 an ounce, reaching their lowest since September 2025 as investment outflows and a weaker demand outlook weighed on prices. The prolonged Middle East conflict has kept energy prices elevated as risk premiums rise, fueling inflation concerns and raising expectations of more restrictive monetary policy across major economies. The Federal Reserve has kept interest rates elevated as widely expected at its October meeting, with two policymakers in favor of a rate hike. Higher borrowing costs reduce the appeal of non-yielding metals such as platinum. Expensive fuel and costlier auto financing also threaten vehicle sales and could curb demand for platinum in catalytic converters. Automotive demand is expected to decline 4%, partly offset by a projected 5% increase in industrial demand. The World Platinum Investment Council now expects a 265,000-ounce surplus in 2026, as weaker investment demand and softer jewelry consumption weigh on the outlook.

Platinum decreased to 1499.00 USD/t.oz, the lowest since October 2025. Over the past 4 weeks, Platinum lost 14.07%, and in the last 12 months, it decreased 4.67%.

Platinum futures fell below $1,530 an ounce, reaching their lowest level since late November 2025 as a broader market selloff, concerns over prolonged high interest rates, and weak fundamentals weighed on prices. The Federal Reserve is widely expected to leave interest rates unchanged this week, although elevated energy prices are still prompting bets on a hike before year-end. Higher borrowing costs reduce the appeal of non-yielding metals such as platinum. Persistent concerns over AI-related investment spending have also fueled volatility in equity markets, prompting investors to liquidate assets to cover losses elsewhere. Meanwhile, the platinum market also faces fundamental headwinds, with the World Platinum Investment Council forecasting a 265,000-ounce surplus in 2026. Total demand is projected to decline 18%, while automotive demand is expected to fall 4%. Industrial demand, however, is forecast to rise 5%, offering some support but doing little to offset the broader weakness.