Platinum futures hovered around $1,600 an ounce, close to their late-November lows, pressured by broad weakness across precious metals amid ongoing hostilities in the Middle East. The conflict has kept inflation risks in focus and strengthened expectations that interest rates may remain elevated for an extended period, weighing on non-yielding assets like platinum.
Investors are now awaiting the Federal Reserve’s policy decision, with rates widely expected to be left unchanged. Even so, markets are pricing in roughly a one-in-three chance of a hike this week and about an 80% probability of another increase in September.
Sentiment in the platinum market has also been dampened by expectations of softer industrial and automotive demand, despite a generally tight supply outlook. The accelerating shift toward electric vehicles, which do not require autocatalysts, has clouded demand prospects, even as the platinum market is projected to record a fourth consecutive annual supply deficit due to constrained mine output and shrinking above-ground inventories.
