FX.co ★ Platinum Retreats From 2-Week High

Platinum futures slipped back below $1,600 an ounce, retreating from a two-week high hit on July 22 and mirroring broad losses across the precious metals complex. The pullback came as surging oil prices reinforced expectations of tighter US monetary policy. Market participants raised the implied probability of a Federal Reserve rate hike in September to over 78% after Brent crude climbed above $100 per barrel, with tanker attacks in the Red Sea and ongoing conflict in the Middle East heightening inflation concerns. Additional uncertainty stemmed from newly imposed US tariffs on imports from 60 trading partners.

Despite the near-term pressure, platinum’s underlying fundamentals remain constructive. The market is projected to record a fourth consecutive annual deficit in 2026, as constrained mine supply and shrinking above-ground inventories more than offset robust growth in recycled material. In the longer term, demand is expected to be underpinned by China’s industrial policies promoting artificial intelligence, electric vehicles, and clean energy, as well as by the introduction of the first platinum investment bar series, which should further support investment and consumption.