Platinum Recovers From 1-Year Low

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.

Platinum futures plunged below $1,500 an ounce, reaching their lowest since September 2025 as investment outflows and a weaker demand outlook weighed on prices. The prolonged Middle East conflict has kept energy prices elevated as risk premiums rise, fueling inflation concerns and raising expectations of more restrictive monetary policy across major economies. The Federal Reserve has kept interest rates elevated as widely expected at its October meeting, with two policymakers in favor of a rate hike. Higher borrowing costs reduce the appeal of non-yielding metals such as platinum. 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.