Platinum futures hold near $1,850 as profit-taking eases

Platinum futures hovered near $1,850, easing from an eleven-week high amid profit-taking after US inflation data came broadly in line with market expectations.

Still, inflation remains above the Fed’s target, boosting expectations of a rate hike by year-end and weighing on demand for the non-yielding metal.

Investors also took profits across the metals complex following the US Treasury’s announcement of increased buybacks of long-term government debt aimed at lowering elevated borrowing costs.

On the industrial side, the Middle East conflict has encouraged countries to reduce their exposure to volatile fuel costs, strengthening the case for investment in cheaper, domestically produced renewable energy.

Rising fuel prices are also supporting EV adoption, potentially reducing demand for platinum used in automotive catalysts.

Still, platinum remained underpinned by a tight global supply-demand balance, with persistent supply deficits and low inventories limiting available metal.