Platinum futures hovered below $1,900 an ounce, trading near their weakest level since December 2025, as the broader selloff in precious metals persisted amid the escalating conflict in the Middle East. The war in Iran continued to widen across the region with no clear resolution in sight, lifting the US dollar and bond yields. This eroded the appeal of non-yielding assets, while rising inflation risks from elevated energy prices reinforced expectations of monetary tightening by major central banks.
Platinum also faced pressure from profit-taking, softening automotive demand, and increasing supply. Following a strong rally in late 2025 and early 2026, investors have been locking in gains. Automotive demand—the largest industrial use for platinum—is expected to fall further as the transition to electric vehicles reduces the need for catalytic converters. Although the platinum market remains in deficit, the shortfall is projected to narrow as recycling supply, particularly from Europe, continues to rise.
