FX.co ★ Platinum Rises on Safe-Haven Demand

Platinum prices have surpassed $1,580 per ounce, closing in on a three-week high due to increasing economic concerns in the United States and anticipated further rate cuts by the Federal Reserve, which enhances the safe-haven appeal of precious metals. Recent data revealed job losses in the US for October, notably in government and retail sectors, along with consumer sentiment dropping to its lowest point in three and a half years by early November. Market traders are currently predicting a 64% likelihood of a 25-basis-point reduction by the Fed in December. Federal Reserve Governor Stephen Miran is advocating for a more substantial cut of half a point, given the declining inflation and rising unemployment rates. Year-to-date, platinum has soared over 70%, outshining gold, propelled by limited supply and strong industrial demand. Concurrently, China has approved the introduction of futures and options contracts for platinum and palladium, marking a significant move towards initiating derivatives trading for these metals, which are essential to the automotive industry and other sectors.