Platinum futures climbed back above $1,650 an ounce, rebounding from a recent nine-week low as a sharp drop in US Treasury yields and softer oil prices supported the market. A rally in US government bonds pushed yields down from a 24-year high, pressuring the US dollar and lowering the opportunity cost of holding non-yielding assets such as platinum. At the same time, weaker oil prices eased worries about persistent energy-driven inflation and the prospect of interest rates staying elevated for longer.
Investors now largely expect the Federal Reserve to leave interest rates unchanged at its upcoming meeting. However, the upside for platinum may be capped by supply–demand fundamentals. The World Platinum Investment Council (WPIC) is forecasting a market surplus in 2026, with total demand projected to decline by 18%. That includes a 32% drop in Chinese jewelry demand and a 4% decrease in demand from the automotive sector.
On the supply side, a state-owned company in Zimbabwe—which holds the world’s third-largest platinum reserves—plans to launch a mining project in Darwendale next year, targeting an estimated 44 million ounces of platinum-group metals.
