Platinum Trades Near 10-Week Low

Platinum futures traded around $1,700 an ounce, remaining near its lowest level in ten weeks, as both near and longer term outlooks remain subdued. Tanker attacks in the Strait of Hormuz lifted oil prices and raised concerns over inflationary pressures, keeping traders cautious and providing some support. However, while markets widely expect the Federal Reserve to leave interest rates unchanged this month, the prospect of a rate hike by year-end could weigh on investment flows into the metal. Over the longer term, the WPIC sees total demand falling 18%, including a 32% drop in Chinese jewelry demand and a 4% decline in automotive demand, although resilient demand for hybrids has helped moderate the decline. Despite this, the drop in demand continues to underpin a bearish outlook for the metal as it outpaces the contraction in supply, with elevated operating costs and power grid instability in South Africa, alongside ongoing trade risks in Russia, constraining production.

Platinum futures rose above $1,700 an ounce, bouncing off from a recent nine-week low as a sharp decline in US Treasury yields and easing oil prices lifted precious metals. A rally in US government bonds pulled yields down from a 24-year peak, weighing on the US dollar and reducing the opportunity cost of holding non-yielding metals such as the platinum. Oil prices also declined, easing concerns over persistent energy-driven inflation and higher-for-longer interest rates. Markets now largely expect the Federal Reserve to keep interest rates unchanged this month. Meanwhile, the WPIC’s forecast of a market surplus in 2026 could limit gains, with total demand expected to fall 18%, including a 32% drop in Chinese jewelry demand and a 4% decline in automotive demand. Elsewhere, a state-owned firm in Zimbabwe, the world’s third-largest platinum reserves, also plans to develop a mining project in Darwendale next year, with an estimated 44 million ounces of platinum-group metals.

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.