FX.co ★ Platinum Struggles to Rebound

Platinum futures hovered slightly above $2,100 per ounce, struggling to mount a sustained rebound from their yearly lows as weak autocatalyst demand and firmer US yields countered ongoing supply constraints. Although intermittent disruptions and power shortages in South Africa have curbed mined output, above-ground inventories and steady recycling flows have softened the immediate impact on physical supply, preventing a more pronounced squeeze. On the demand side, autocatalyst consumption remains uneven: global vehicle production is rising only modestly, and the gradual shift toward electric vehicles is weighing on long-term internal combustion engine demand, limiting additional platinum loadings. At the same time, solid US labor market data and expectations that the Federal Reserve will postpone interest rate cuts have bolstered yields and the dollar, dampening investment appetite for precious metals and curbing inflows into platinum.