Platinum Falls to 5-Week Low
Platinum futures held below $1,760 an ounce after dropping more than 4% in the previous session to a five-week low, as higher Treasury yields and dollar strength reduced demand for the non-yielding metal. The selloff followed stronger-than-expected US business activity data, reinforcing expectations for higher interest rates. The 10-year US Treasury yield climbed to its highest level since 2007, while the dollar strengthened as markets raised bets on another Federal Reserve rate hike at the October meeting. Rising oil prices also added to inflation concerns, after Iran's President said Tehran would keep the Strait of Hormuz closed while US sanctions and the blockade remain. Still, platinum’s underlying fundamentals remain supportive, with above-ground stocks expected to cover only about 3.4 months of global demand despite a forecast 265,000-ounce surplus in 2026, while industrial demand is projected to grow 5%, partly driven by AI infrastructure.
Platinum futures held below $1,760 an ounce after dropping more than 4% in the previous session to a five-week low, as higher Treasury yields and dollar strength reduced demand for the non-yielding metal. The selloff followed stronger-than-expected US business activity data, reinforcing expectations for higher interest rates. The 10-year US Treasury yield climbed to its highest level since 2007, while the dollar strengthened as markets raised bets on another Federal Reserve rate hike at the October meeting.
Rising oil prices also added to inflation concerns, after Iran's President said Tehran would keep the Strait of Hormuz closed while US sanctions and the blockade remain. 4 months of global demand despite a forecast 265,000-ounce surplus in 2026, while industrial demand is projected to grow 5%, partly driven by AI infrastructure.