Platinum futures extended their decline below $1,580 an ounce, touching a new seven-month low and heading for a sharp second consecutive monthly and quarterly loss. Demand has been pressured by ongoing tensions in the Middle East and growing expectations of further US interest rate hikes.
Precious metals have broadly weakened since the Federal Reserve adopted a more hawkish tone this month, leading markets to price in three rate increases this year, with the first potentially arriving as early as September. A stronger dollar has followed, making dollar-denominated commodities more expensive for holders of other currencies.
At the same time, persistent worries that potential disruptions to energy shipments through the Strait of Hormuz could stoke global inflation have reinforced expectations that borrowing costs will remain elevated for longer. This environment continues to weigh on non-yielding assets such as precious metals.
Although the US and Iran are scheduled to resume peace talks, a key sticking point remains. Tehran has reiterated its intention to oversee traffic through the Gulf, even if Oman ultimately declines to participate, keeping geopolitical risks firmly in focus.
