Platinum futures fell below $1,900 an ounce, marking their lowest level since December 2025, as profit-taking, softer industrial demand, and improved supply conditions pressured prices. After a strong rally in late 2025 and early 2026, investors began locking in profits, prompting a sharp correction.
Investment demand is projected to decline by as much as 52%, driven by ETF outflows and reduced retail interest, particularly in China. Automotive demand is also expected to weaken as the ongoing shift toward electric vehicles curbs the need for platinum-intensive catalytic converters.
While the platinum market remains in deficit, the supply shortfall is forecast to narrow, largely due to increased recycling flows, especially in Europe. Platinum prices have also been dragged lower by broader weakness across the precious metals complex amid the ongoing war in the Middle East.
At the same time, a stronger US dollar and rising bond yields have diminished the appeal of non-yielding assets, while persistent inflation concerns have reinforced expectations of tighter monetary policy from major central banks.
