FX.co ★ Platinum Pressured Near Multi-Month Lows

Platinum futures hovered around $1,700 an ounce, close to a two-month low, as elevated oil prices and high Treasury yields weighed on the precious metals sector. Crude prices rebounded on persistent risks to Middle East supply, keeping inflation and interest-rate worries in focus, while Treasury yields held near multi-decade highs amid stubborn inflation, rising fiscal concerns, and strong AI-related debt issuance.

At the same time, markets are assigning roughly an 80% probability that the Federal Reserve will leave interest rates unchanged this month, following a weaker-than-expected labor market report. Platinum’s fundamentals remain mixed: the WPIC expects industrial demand to rise 5% in 2026, helped in part by AI infrastructure investment, while automotive demand is projected to decline 4%, resulting in an anticipated surplus of about 265,000 ounces. Over the longer term, however, the rapid expansion of AI infrastructure is expected to provide ongoing support for platinum demand.