FX.co ★ Platinum Retreats

Platinum futures have dipped below $2,100 per ounce, pulling back after a recent rise. This decline is part of a broader downturn in precious metals, driven by a strengthening US dollar. The decrease occurred following assertive signals from the Federal Reserve. Governor Lisa Cook indicated her opposition to further interest rate cuts, and the nomination of Kevin Warsh as the potential next Fed chair by President Trump—who is perceived to be less supportive of aggressive monetary easing—has heightened expectations of a slower pace in US rate reductions. Geopolitical tensions also remain significant as the US and Iran have scheduled new talks. Additionally, immediate demand pressures have softened, as high prices threaten to depress autocatalyst purchases and drive a shift towards palladium instead. Nevertheless, the decline is somewhat contained by ongoing supply constraints: the platinum market remains fundamentally undersupplied, primarily due to South Africa's challenges. As South Africa accounts for nearly 70% of global production, ongoing issues of underinvestment and operational disruptions continue to impact output.