FX.co ★ Platinum Retreats on Profit Booking

On Wednesday, platinum futures declined to under $2,300 per ounce, pulling back from near record highs as investors seized the opportunity to secure profits amid a broader metals market downturn. Additionally, commodities faced downward pressure from a strengthening dollar, with traders on edge over a slew of upcoming US economic data that could impact the Federal Reserve's policy decisions. Earlier in the week, platinum, alongside other precious metals, had surged significantly due to heightened demand for safe-haven assets—propelled by US involvement in Venezuela and escalating geopolitical tensions, driving investments towards assets that do not yield interest. Market anticipation of further US interest rate reductions also buoyed precious metals, with investors factoring in two cuts this year, opposed to the lone reduction anticipated by the Fed. Despite short-term profit-taking impacting prices, platinum's fundamentals remained robust, supported by structural supply constraints in major producing areas, particularly the sustained tightness in South African output, and strong industrial demand.