FX.co ★ Platinum Retreats from One-and-a-Half-Month High

Platinum prices recently fell to approximately $1,630 per ounce, following a peak of $1,725 recorded on December 1. This decline is largely attributed to profit-taking activities and an uptick in U.S. Treasury yields. Previously, the metal had seen a surge due to the introduction of platinum futures by China. The U.S. ISM Manufacturing PMI indicated a continued contraction for the ninth month in a row. Simultaneously, both China's official and RatingDog Manufacturing PMIs dipped below 50, underscoring ongoing difficulties amid sluggish domestic demand and a challenging global climate. Despite this recent downturn, platinum remains close to its highest valuation since 2011. This resilience is bolstered by increased global risk aversion and continued tight supply-demand dynamics. The market anticipates a significant supply shortfall persisting until 2025 before a potential surplus may develop in 2026. On the economic policy front, investors largely anticipate the Federal Reserve will implement a third interest rate cut this month.