FX.co ★ Platinum Steadies After Fed Decision

Platinum has maintained a steady position above $1,670 per ounce, showing minimal movement throughout the current month. This stability follows the recent decision by the US Federal Reserve to implement an anticipated quarter-point rate cut, while also signaling a shift towards a less aggressive monetary policy. Federal Reserve Chair Jerome Powell expressed limited prospects for further interest rate hikes and highlighted ongoing confidence in the momentum of the US economy. Despite the Fed's forecast of a single rate cut for the following year, market projections anticipated two. The metal continues to hover near its highest value in over ten years, buoyed by optimism for a potential uptick in Chinese demand, spurred by the introduction of a physically-settled platinum contract on the Guangzhou Futures Exchange. Looking forward, the World Platinum Investment Council anticipates a deficit of 69,200 ounces in 2025, marking the third consecutive year of shortages. They also predict that the market will reach an overall balance in 2026, with a slight surplus of approximately 20,000 ounces.