FX.co ★ Platinum Rises to 3-Week High

Platinum futures climbed to around $1,670 an ounce, marking their highest level in more than three weeks, as softer US inflation data helped offset concerns over the escalating conflict in the Middle East. US producer prices unexpectedly declined in June for the first time in nearly a year and, alongside weaker-than-expected consumer inflation figures, effectively removed the prospect of a Federal Reserve rate hike this month. The shift weighed on the US dollar, pushing it to a one-month low and bolstering demand for dollar-denominated commodities such as platinum.

At the same time, the intensification of tensions between the US and Iran kept oil prices elevated, sustaining upward pressure on the inflation outlook. On the supply side, platinum prices continued to be underpinned by expectations of a fourth consecutive global deficit this year, as restricted output from South African mines, limited recycling flows, and shrinking above-ground inventories kept the physical market tight. Industrial demand remained firm as well, particularly from the automotive sector.