Platinum futures remained below $1,540 an ounce, hovering near their lowest level since late November 2025, as sustained investment outflows and a weaker demand outlook pressured prices. The prolonged conflict in the Middle East has kept energy prices elevated amid rising risk premiums, stoking inflation concerns and reinforcing expectations of tighter monetary policy across major economies. Markets are now focused on this week’s Federal Reserve decision, with policymakers widely expected to maintain interest rates at restrictive levels. Higher borrowing costs tend to diminish the appeal of non-yielding assets such as platinum.
At the same time, elevated fuel prices and more expensive auto financing are threatening vehicle sales, potentially dampening demand for platinum used in catalytic converters. Automotive demand is forecast to fall by 4%, though this is expected to be partially offset by a projected 5% increase in industrial demand. The World Platinum Investment Council also anticipates a surplus of 265,000 ounces in 2026, as weaker investment interest and softer jewelry consumption further weigh on the market outlook.
