FX.co ★ Platinum Rebounds Above $2,200 Amid Market Volatility

Platinum prices have rebounded, surpassing $2,200 per ounce, as investors reengaged with the metal after a recent downturn that had seen values dip below $2,000 for the first time since December. This volatility followed profit-taking spurred by the previous week's peak rally and was further influenced by the nomination of Kevin Warsh by U.S. President Donald Trump as the future Federal Reserve chair. Warsh is perceived as potentially adopting a stricter monetary policy stance compared to other candidates. In the short term, demand for platinum has shown signs of diminishing, with high prices possibly leading to reduced purchases for autocatalysts and a shift towards palladium as an alternative. Nevertheless, the price decline is somewhat mitigated by ongoing supply constraints; the platinum market continues to experience a structural deficit, primarily due to South Africa—responsible for approximately 70% of global production—facing issues stemming from chronic underinvestment and operational challenges.