Platinum Trades Near 10-Week Low
Platinum futures traded around $1,700 an ounce, remaining near its lowest level in ten weeks, as both near and longer term outlooks remain subdued. Tanker attacks in the Strait of Hormuz lifted oil prices and raised concerns over inflationary pressures, keeping traders cautious and providing some support. However, while markets widely expect the Federal Reserve to leave interest rates unchanged this month, the prospect of a rate hike by year-end could weigh on investment flows into 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.
Platinum futures traded around $1,700 an ounce, remaining near its lowest level in ten weeks, as both near and longer term outlooks remain subdued. Tanker attacks in the Strait of Hormuz lifted oil prices and raised concerns over inflationary pressures, keeping traders cautious and providing some support. However, while markets widely expect the Federal Reserve to leave interest rates unchanged this month, the prospect of a rate hike by year-end could weigh on investment flows into 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.