FX.co ★ Platinum Approaches Record Levels

Platinum futures have surged beyond $2,430 per ounce, nearing record highs as investors increasingly turn to precious metals. This trend is driven by the anticipation of potential interest rate cuts in the U.S. and heightened demand for safe-haven assets. Recent U.S. inflation data for December indicates signs of moderation, suggesting that inflationary pressures are easing. This provides markets with increased clarity following the temporary disruptions caused by recent shutdowns. Currently, futures traders are divided, with some predicting two or three Federal Reserve rate cuts this year, surpassing the Fed's own median projection of just one cut. Meanwhile, demand for safe-haven assets has been bolstered by rising concerns regarding the Federal Reserve's independence amid a criminal investigation involving Chair Powell, as well as escalating geopolitical tensions, notably the potential for U.S. involvement in Iran. Furthermore, structural supply limitations in key production regions, especially ongoing constraints in South African output, coupled with strong industrial demand from sectors like automotive, continue to underpin the metal's value.