Platinum Rises for Third Session

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.

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%.