Platinum Hits 8-week Low

Platinum futures rose above $1,700 an ounce, attempting to rebound from a recent two-month low as falling oil prices offset pressure from elevated Treasury yields and a firm US dollar. Easing crude prices amid signs of improving energy flows from the Middle East are now helping non-yielding metals by reducing inflation concerns and bets on higher-for-longer interest rates. However, Treasury yields remain elevated, with the US 10-year yield near 5.24%, close to its highest since 2007 as persistent energy-driven inflation, a resilient US economy and hawkish signals from Federal Reserve officials strengthened expectations for further rate hikes. Meanwhile, platinum’s fundamentals remain mixed, with WPIC forecasting industrial demand to rise 5% in 2026 but automotive demand to fall 4%, leaving the market with a projected 265,000-ounce surplus. Over the longer term, demand will be underpinned by the rapid build-out of artificial intelligence.

Platinum decreased to 1676.00 USD/t.oz, the lowest since August 2026. Over the past 4 weeks, Platinum lost 6.42%, and in the last 12 months, it increased 5.22%.

Platinum futures fell below $1,700 an ounce, reaching their lowest level in eight weeks, as elevated oil prices boosted bets on higher-for-longer interest rates and weakened near-term investment flows. The lack of progress in diplomatic talks between the US and Iran over the Strait of Hormuz left global oil prices volatile. As a result, traders are increasingly pricing in further rate hikes by major economies, including the ECB and the US Federal Reserve, raising the opportunity cost of holding the non-yielding metal and reducing investment demand. Adding to bearish pressure, the platinum market is forecast to post its first surplus since 2022, according to the WPIC, as a 5% increase in industrial demand is expected to offset a 4% decline in demand from carmakers. Over the longer term, demand will be underpinned by the rapid build-out of artificial intelligence.