Platinum futures remained below $1,760 an ounce after sliding more than 4% in the previous session to a five-week low, as rising US Treasury yields and a stronger dollar dampened demand for the non-yielding metal. The selloff was triggered by stronger-than-expected US business activity data, which reinforced expectations of higher interest rates.
The yield on the 10-year US Treasury note advanced to its highest level since 2007, while the dollar appreciated as markets increased the probability of another Federal Reserve rate hike at the October meeting. At the same time, climbing oil prices added to inflation concerns, after Iran’s president said Tehran would keep the Strait of Hormuz closed as long as US sanctions and the blockade remain in place.
Even so, platinum’s underlying fundamentals remain broadly supportive. Above-ground inventories are expected to cover only around 3.4 months of global demand in 2026, despite a forecast surplus of 265,000 ounces. Industrial demand is also projected to rise by 5%, supported in part by investment in AI-related infrastructure.
