FX.co ★ Platinum Rises on Safe-Haven Demand

Platinum prices rose above $1,640 per ounce on Monday, rebounding after a two-day decline. This increase was driven by renewed concerns over US-China trade relations, political instability, and the prospect of further US interest rate cuts, which collectively bolstered the appeal of safe-haven assets. This development comes after US President Donald Trump announced plans on Friday to implement an additional 100% tariff on Chinese imports starting November 1. This move was in response to China's newly announced export restrictions on rare earth minerals. Additionally, the ongoing US government shutdown has negatively impacted market sentiment. Investors are anticipating a 25 basis point rate cut by the Federal Reserve this month, with expectations of another cut in December. In the automotive sector, demand for platinum in gasoline vehicle catalysts remains robust, supported by strong sales of hybrid vehicles, despite the shift towards electric vehicles. According to the World Platinum Investment Council, platinum mine supply is anticipated to decrease at a compound annual growth rate of -1.5% from 2024 to 2029.