FX.co ★ Platinum Remains Under Pressure

Platinum futures hovered around $1,700 an ounce, lingering near one‑month lows as elevated oil prices and higher US Treasury yields weighed on the precious metals complex. Treasury yields have risen to multi‑decade highs amid concerns that energy-driven inflation will remain persistent, potentially forcing central banks to maintain or tighten monetary policy and thereby pressuring non-yielding assets such as precious metals.

Oil prices have also stayed elevated, with negotiations between the US and Iran making little headway despite signs of improving crude flows from the Middle East. Some support for platinum came from softer-than-expected US inflation data, which led markets to scale back the probability of another Federal Reserve rate hike this month.

Platinum’s fundamental outlook remains mixed. The World Platinum Investment Council (WPIC) projects that industrial demand will increase by 5% in 2026, supported in part by expanding artificial intelligence (AI) infrastructure. However, automotive demand is forecast to decline by 4%, leaving the market with an anticipated surplus of about 265,000 ounces. Over the longer term, demand is expected to be underpinned by the rapid build-out of AI-related infrastructure.