FX.co ★ Platinum Pulls Back from Mid-October High

Platinum prices have seen some fluctuation, currently hovering around $1,570 per ounce, after peaking at $1,722 in mid-October. This recent dip is attributed to a decrease in safe-haven demand following the trade agreement between the US and China, coupled with a more aggressive stance by the Federal Reserve. The trade pact entails a temporary reduction of certain tariffs from 20% to 10%, offering limited relief to China's manufacturing sector. Nonetheless, China's October Purchasing Managers' Index fell to 50.6, missing forecasts. Additionally, Federal Reserve Chair Jerome Powell has suggested that the recent rate cut might be the last for this year, given the limited economic data due to the ongoing US government shutdown. Despite this recent decline, platinum remains roughly 60% higher for the year, outperforming both gold and silver. This performance is bolstered by a tight supply and robust industrial demand. Market participants are also closely watching the potential introduction of platinum futures in China as a means to enhance market liquidity, while the US Section 232 investigation into critical mineral imports introduces more uncertainty regarding tariffs.