FX.co ★ Platinum Hits Two-Month Low

Platinum prices have declined to levels below $1,490 per ounce, marking a two-month low. This downturn is attributed to traders' growing conviction that the Federal Reserve will maintain interest rates in December. Coupled with this sentiment, the delayed release of the US jobs report depicted a nuanced economic landscape, highlighting robust employment growth for September but also revealing an increase in unemployment to a four-year high of 4.4%. This data ambiguity, alongside economic challenges intensified by the US government shutdown, diminishes the likelihood of imminent monetary easing by the Fed. The platinum market, having surged over 70% this year due to constrained supply and high industrial demand, is feeling the strain of this broader policy uncertainty. Additional pressure arises from improved visibility of Chinese inventories and indications of a resurgence in South African output, which have moderated the scarcity premium, leading to speculative and ETF position reductions. Looking forward, despite current challenges, the World Platinum Investment Council anticipates only a slight surplus by 2026, suggesting persistent structural supply constraints that may bolster prices in the long term.