Platinum Pressured Near Multi-Month Lows

Platinum futures rose above $1,550 an ounce, extending their recovery to a two-week high as easing Middle East tensions and falling oil prices improved the outlook for precious metals. The sweeping Democrats' victory in the US midterm elections raised hopes of reduced tensions with Iran, while President Donald Trump's remarks that further attacks were unlikely if negotiations progressed reinforced expectations of de-escalation. The resulting decline in crude prices eased energy-driven inflation concerns, however, expectations of a potential Fed rate hike in December increased after US employment data significantly exceeded expectations. Meanwhile, the automotive sector, a major source of platinum demand, faces pressure from weaker vehicle production, elevated financing costs and the gradual shift toward EVs, although growing hybrid production and continued demand for catalytic converters are helping cushion the decline.

Platinum futures held above $1,500 an ounce after recovering from a one-year low, as a weaker US dollar and lower Treasury yields supported demand for non-yielding metals. The dollar and bond yields declined following the sweeping Democratic victory in the US midterm elections, as investors anticipated limits on government spending and a possible easing of Middle East tensions, which could help cool inflation. Still, concerns that tighter AI regulations could slow data center expansion triggered a sharp technology stock selloff, prompting some liquidity-driven selling in precious metals. Meanwhile, the automotive sector, a major source of platinum demand, faces pressure from weaker vehicle production, elevated financing costs and the gradual shift toward EVs, although growing hybrid production and continued demand for catalytic converters are helping cushion the decline. Industrial demand is expected to grow 5% in 2026, partly offsetting a projected 4% drop in automotive consumption.

Platinum futures rose above $1,430 an ounce but remained close to their lowest since September 2025, following a Democratic sweep in the US midterm elections. The results could complicate President Trump’s foreign policy agenda and efforts to secure additional funds for the war with Iran. Still, markets continue to price in further monetary tightening as energy costs linked to the Middle East conflict remain elevated and fuel inflation concerns. Higher rates put downward pressure in investment demand for the non-yielding metal. 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.