Platinum Pressured Near Multi-Month Lows

Platinum futures traded around $1,700 an ounce, near two-month lows as elevated oil prices and Treasury yields pressured the precious metals complex. Oil prices rebounded on persistent risks to Middle East supply, keeping inflation and interest-rate concerns in focus, while Treasury yields remained near multi-decade highs on persistent inflation, rising fiscal risks and elevated AI-related debt issuance. Meanwhile, markets are pricing in around an 80% chance that the Federal Reserve will leave rates unchanged this month following a weaker-than-expected labor market report. Platinum’s fundamentals also remain mixed, with WPIC forecasting industrial demand to rise 5% in 2026, partly driven by AI infrastructure, while automotive demand is expected to fall 4%, leaving a projected 265,000-ounce surplus. Over the longer term, the rapid build-out of AI infrastructure is expected to support demand.

Platinum futures traded above $1,700 an ounce, struggling to sustain its rebound from multi-week lows as a stronger US dollar offset softer US jobs data. The US economy added fewer jobs than expected in September, while downward revisions to previous months pointed to a softer labor market, easing expectations of another Federal Reserve interest rate hike this month and reducing the opportunity cost of holding non-yielding metals such as platinum. However, precious metals remained under pressure as the US dollar stayed firm and Treasury yields remained elevated, while higher oil prices continued to raise concerns over inflation. Meanwhile, platinum’s fundamentals remain mixed, with WPIC forecasting industrial demand to rise 5% in 2026, partly driven by AI infrastructure, but automotive demand is expected 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 futures traded around $1,700 an ounce, near one-month lows as elevated oil prices and Treasury yields pressured the precious metals complex. Treasury yields climbed to multi-decade highs amid concerns over persistent energy-driven inflation, which could prompt tighter monetary policy and weigh on non-yielding metals. Oil prices also remain elevated as the US and Iran make little progress in negotiations despite signs of recovering Middle East flows. However, softer-than-expected US inflation data offered some support as markets reduced the odds of another Federal Reserve interest rate hike this month. Meanwhile, platinum’s fundamentals remain mixed, with WPIC forecasting industrial demand to rise 5% in 2026, partly driven by AI infrastructure, but automotive demand is expected 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.