Platinum futures hovered around $1,650 an ounce, remaining close to late-November lows as investors balanced easing geopolitical tensions in the Middle East against persistent expectations of higher US interest rates. Although the Federal Reserve left rates unchanged last week, markets continued to price in an additional hike later this year, following a series of hawkish comments from Fed officials. This outlook has pressured non-yielding assets such as platinum.
On the supportive side, diplomatic progress in the US–Iran standoff and talks over a possible reopening of the Strait of Hormuz underpinned sentiment across the precious metals complex. The longer-term supply picture also remained constructive, with the platinum market still forecast to record another annual deficit.
In corporate developments, South African producer Valterra Platinum reported a sharp increase in interim profit, attributing the gain to firmer platinum-group metal prices and rising demand linked to AI-related infrastructure. The company expects this AI-driven demand to expand substantially in the coming years.