FX.co ★ Platinum Futures Near 2-Month High

Platinum futures climbed to about $1,780 per ounce, nearing an eight-week high and mirroring a broader rally across the precious metals complex. Investment demand for precious metals strengthened as Chinese institutional investors increased their bullion holdings amid elevated market volatility, with gold-backed ETFs in China registering their longest streak of inflows in months.

At the same time, AI and data center expansion are emerging as potential new drivers of future demand for platinum-group metals (PGMs). In July, Valterra Platinum estimated current AI-related PGM demand at 200,000–400,000 ounces annually and projected that this could increase fivefold by 2030, citing PGMs’ electrical and thermal properties as critical for AI infrastructure.

Nevertheless, the World Platinum Investment Council expects the platinum market to remain in deficit over the longer term, constrained by limited mine supply, particularly in South Africa. While higher prices could incentivize greater recycling and eventually temper some demand, structural tightness is still anticipated.