Platinum Hits Eight-Week Low
Platinum futures fell below $1,720 an ounce, reaching their lowest level in eight weeks, as rising oil prices boosted bets on higher-for-longer interest rates and weakened investment demand. Diplomatic talks between the US and Iran over the Strait of Hormuz fell through after President Trump rejected Tehran’s proposal to reopen the critical waterway, while stating that talks would resume this week. As a result, oil prices advanced and expectations of further monetary tightening by the Federal Reserve increased, raising the opportunity cost of holding the non-yielding metal. Meanwhile, the platinum market is forecast to post a 265,000-ounce surplus, marking the first surplus since 2022, according to the WPIC, as a 5% increase in industrial demand is expected to offset a 4% decline in demand from carmakers. Over the longer term, demand will be underpinned by the rapid build-out of artificial intelligence.
Platinum futures fell below $1,720 an ounce, reaching their lowest level in eight weeks, as rising oil prices boosted bets on higher-for-longer interest rates and weakened investment demand. Diplomatic talks between the US and Iran over the Strait of Hormuz fell through after President Trump rejected Tehran’s proposal to reopen the critical waterway, while stating that talks would resume this week. As a result, oil prices advanced and expectations of further monetary tightening by the Federal Reserve increased, raising the opportunity cost of holding the non-yielding metal.
Meanwhile, the platinum market is forecast to post a 265,000-ounce surplus, marking the first surplus since 2022, according to the WPIC, as a 5% increase in industrial demand is expected to offset a 4% decline in demand from carmakers. Over the longer term, demand will be underpinned by the rapid build-out of artificial intelligence.