FX.co ★ Platinum Set for Strong Monthly Gain

By the end of September, platinum's price hovered around $1,600 per ounce, marking an approximate 17% increase for the month. This surge coincided with a general uptick in the demand for safe-haven assets like gold and silver, driven by worldwide economic uncertainties. Key factors bolstering this trend included declining interest rates, expanding fiscal deficits in major global economies, and persistent inflation rates exceeding targets, which have continued to undermine currency values. However, looming risks could impede this momentum, such as a potential resurgence in inflation and the possibility of central banks resuming monetary tightening measures. Unlike gold and silver, platinum's performance was hindered by its dependency on the automotive industry, particularly for use in diesel engine catalytic converters—a sector experiencing a consistent decrease in demand. From the supply perspective, the World Platinum Investment Council forecasts a 6% reduction in South Africa’s mining output this year. Although recycling has seen slight growth, it remains at historically low levels, resulting in a total supply expectation to decline by 3%, reaching approximately 7.03 million ounces by 2025.