Platinum Falls to Nine-Week Low

Platinum futures fell below $1,700 an ounce to their lowest level in just over two months, pressured by investment flows and a weaker demand outlook. Elevated energy prices have fueled concerns over persistent inflation and debt affordability, pushing sovereign yields to multi-year highs and increasing the opportunity cost of holding non-yielding assets such as platinum. Bearish sentiment was reinforced by the World Platinum Investment Council’s forecast of a market surplus in 2026, with total demand expected to decline 18%, including a 32% drop in Chinese jewelry demand and a 4% decline from automakers. Additional supply could also weigh on prices, as a state-owned firm in Zimbabwe, the world’s third-largest platinum reserves, plans to develop a mining project in Darwendale next year, with an estimated 44 million ounces of platinum-group metals. Over the longer term, however, rapid AI infrastructure expansion could support demand.

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.