Platinum Holds Rebound
Platinum futures held above $1,500 an ounce after recovering from a recent one-year low, as a weaker US dollar and lower Treasury yields supported prices. The dollar and bond yields declined following the sweeping Democratic victory in the US midterm elections, as investors anticipated limits on government spending and a possible easing of Middle East tensions, which could help cool inflation. However, concerns that tighter AI regulations could slow data center expansion triggered a sharp technology stock selloff, prompting some liquidity-driven selling in precious metals. Meanwhile, the automotive sector, a major source of platinum demand, faces pressure from weaker vehicle production, elevated financing costs and the gradual shift toward EVs. However, growing hybrid production and continued demand for catalytic converters are helping cushion the decline. Industrial demand is expected to grow 5% in 2026, partly offsetting a projected 4% drop in automotive consumption.
Platinum futures held above $1,500 an ounce after recovering from a recent one-year low, as a weaker US dollar and lower Treasury yields supported prices. The dollar and bond yields declined following the sweeping Democratic victory in the US midterm elections, as investors anticipated limits on government spending and a possible easing of Middle East tensions, which could help cool inflation. However, concerns that tighter AI regulations could slow data center expansion triggered a sharp technology stock selloff, prompting some liquidity-driven selling in precious metals.
Meanwhile, the automotive sector, a major source of platinum demand, faces pressure from weaker vehicle production, elevated financing costs and the gradual shift toward EVs. However, growing hybrid production and continued demand for catalytic converters are helping cushion the decline. Industrial demand is expected to grow 5% in 2026, partly offsetting a projected 4% drop in automotive consumption.