Platinum Stays Near 2-Week Lows

Platinum futures held above $1,780 an ounce but remained near two-week lows as a stronger US dollar following the Federal Reserve’s hawkish 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 within days. 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 forecasting a moderate surplus in 2026. Industrial demand also remains supportive, including applications in emissions control, hydrogen and emerging AI technologies, though the shift toward BEVs poses a longer-term headwind for autocatalyst demand.

Platinum decreased to 1746.00 USD/t.oz, the lowest since August 2026. Over the past 4 weeks, Platinum lost 2.39%, and in the last 12 months, it increased 24.71%.

Platinum fell below $1,800 an ounce, reaching its lowest in more than a week, as the metal remained influenced by near-term investment flows while traders assessed prospects monetary tightening across major economies, weighing on demand for the non-yielding metal. The World Platinum Investment Council revised its 2026 market forecast to a surplus, with total demand set to fall 18%, driven by reduced demand for Chinese jewelry, which plunged 32%, and from automakers, which declined 6%. Additionally, heightened economic uncertainty stemming from the conflict in the Middle East has increased expectations of monetary tightening across major economies. The ECB hiked its policy rate at its September meeting, while investors increased bets on a Fed rate hike at its meeting this week as US inflation held steady above target, further dampening demand for platinum. In the long term, however, industrial demand provides some support, underpinned by the rapid build-out of artificial intelligence.