FX.co ★ Platinum Falls on Hawkish Fed View

Platinum prices declined to approximately $1,550 per ounce, reaching a one-week low. This drop coincides with traders adjusting their expectations regarding upcoming interest rate cuts from the US Federal Reserve, leading to a general pullback in the precious metals market. Currently, market predictions indicate a 46% probability that the Fed will implement a 25 basis points rate cut in December, a significant decrease from the roughly 88% likelihood anticipated a month ago. This shift follows statements from several Federal Reserve officials who cast doubt on the necessity of a December rate cut, with some outright opposing it. Attention is now turning to the upcoming US jobs report for September, set to be released on Thursday, as well as the soon-to-be updated schedule of economic data releases. So far this year, platinum has experienced a remarkable increase of over 70%, outperforming gold. This surge is driven by restricted supply and robust industrial demand. In addition, China has approved the registration for platinum and palladium futures and options, representing a crucial advancement towards the initiation of derivatives trading for metals essential to the automotive industry and other sectors.