Platinum Hits 3-Month Low
Platinum futures fell around $1,600 an ounce, reaching their lowest level in three months as renewed energy-driven inflation risks pressured the precious metals complex. Crude prices rose as escalating Middle East tensions raised concerns over oil supply disruptions, reviving fears that higher energy costs could keep inflation elevated and force central banks to maintain tighter monetary policy. Higher interest rates typically weigh on non-yielding metals by increasing the opportunity cost of holding them. Investors are now watching the Federal Reserve’s upcoming policy meeting for clues on the interest-rate outlook. Platinum also faces fundamental headwinds, with the World Platinum Investment Council forecasting a 265,000-ounce market surplus in 2026, as weaker investment demand and softer jewelry consumption weigh on the outlook. Automotive demand is also expected to decline 4%, partly offset by a projected 5% increase in industrial demand.
Platinum futures fell around $1,600 an ounce, reaching their lowest level in three months as renewed energy-driven inflation risks pressured the precious metals complex. Crude prices rose as escalating Middle East tensions raised concerns over oil supply disruptions, reviving fears that higher energy costs could keep inflation elevated and force central banks to maintain tighter monetary policy. Higher interest rates typically weigh on non-yielding metals by increasing the opportunity cost of holding them. Investors are now watching the Federal Reserve’s upcoming policy meeting for clues on the interest-rate outlook.
Platinum also faces fundamental headwinds, with the World Platinum Investment Council forecasting a 265,000-ounce market surplus in 2026, as weaker investment demand and softer jewelry consumption weigh on the outlook. Automotive demand is also expected to decline 4%, partly offset by a projected 5% increase in industrial demand.