Platinum Falls Toward Three-Month Low

Platinum futures traded below $1,630 an ounce, approaching its lowest level in three months amid persistent investment outflows and a bearish long-term outlook. Stronger-than-expected US inflation pushed the odds of a Federal Reserve rate hike in October to nearly 50%, reversing earlier expectations that rates would remain unchanged until December. Higher-for-longer interest rates weigh on non-yielding assets such as platinum by increasing the opportunity cost of holding them. 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 decreased to 1619.00 USD/t.oz, the lowest since August 2026. Over the past 4 weeks, Platinum lost 8.65%, and in the last 12 months, it decreased 2.77%.

Platinum futures traded below $1,700 an ounce, remaining near its lowest level in ten weeks, as both near and longer term outlooks remain subdued. Short-term investment flows take some support from cautious traders while awaiting further clues on the impact of elevated oil prices on inflation and the pace of monetary policy tightening. While markets widely expect the Fed to leave interest rates unchanged this month, however, the prospect of a rate hike by year-end could weigh on demand for 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.