FX.co ★ Platinum Attempts Recovery

Platinum futures climbed nearly 2% to above $1,950 an ounce, rebounding from a three-week low as progress in US–Iran negotiations helped ease concerns over inflation and further interest rate hikes. Reports suggested that a proposed agreement could lead to a reopening of the Strait of Hormuz, raising hopes that energy supply disruptions might diminish. However, President Donald Trump stated that the US would maintain its blockade of the key shipping route until a formal deal is concluded.

At the same time, platinum prices continued to be underpinned by a supportive supply–demand backdrop. Robust demand from China—bolstered in part by the launch of a new onshore platinum futures contract—has strengthened investor interest in the metal. The market remains structurally tight, with production in major supplying countries, notably South Africa and Russia, constrained by aging mines, elevated operating costs, and sanctions-related obstacles. Expectations of firm industrial demand from the automotive sector are providing additional support.