FX.co ★ Platinum Firms Up on Fed Rate Cut Bets

Platinum prices recently rose to approximately $1,670 per ounce, reaching their highest level in around six weeks as investors brace for an anticipated rate cut by the US Federal Reserve this week. Despite this, the forecast for 2026 remains uncertain, with analysts suggesting a "hawkish cut," wherein Federal Reserve Chair Jerome Powell may adopt a cautious approach towards further rate reductions. The recent uptick in platinum prices has been buoyed by optimism regarding a potential recovery in Chinese demand, attributed to the introduction of a physically settled platinum contract on the Guangzhou Futures Exchange. Platinum has experienced a remarkable increase of about 80% this year, driven by movements towards safe-haven assets, disruptions in supply from South Africa, and robust purchasing activity in China. Looking forward, the World Platinum Investment Council predicts a deficit of 69,200 ounces for 2025, marking the third consecutive year of shortfall. However, it is expected that the market will achieve a near-equilibrium in 2026, with a marginal surplus of around 20,000 ounces.