FX.co ★ Platinum Hits 3-Month Low

Platinum futures slipped to around $1,600 an ounce, their lowest level in three months, as renewed energy-driven inflation risks weighed on the broader precious metals market. Crude oil prices climbed amid escalating tensions in the Middle East, stoking concerns over potential supply disruptions. That, in turn, has revived worries that persistently higher energy costs could keep inflation elevated and compel central banks to maintain tighter monetary policy for longer.

Higher interest rates typically pressure non-yielding assets such as precious metals by raising the opportunity cost of holding them, and investors are now focused on the Federal Reserve’s upcoming policy meeting for clearer signals on the interest-rate path.

Platinum’s outlook is further constrained by unfavorable fundamentals. The World Platinum Investment Council projects a market surplus of 265,000 ounces in 2026, reflecting weaker investment demand and softer jewelry consumption. Automotive demand is also expected to fall by 4%, though this is anticipated to be partially offset by a projected 5% increase in industrial demand.