FX.co ★ Platinum Pulls Back From Record

Platinum futures experienced a significant decrease, dropping over 3% to approximately $2,410 per ounce on Thursday. This decline marks a retreat from record highs amidst a wider downturn in the precious metals market. The drop followed recent comments by US President Donald Trump, in which he dismissed the idea of using military force to acquire Greenland and decided against imposing tariffs on European nations. Instead, he introduced a framework for a possible future agreement with NATO, although specifics of the deal remain vague. Despite this, Denmark asserted its refusal to negotiate Greenland's cession to the US. Concurrently, the European Parliament has halted the ratification of a trade agreement between the EU and the US that was reached in July, adding to the climate of uncertainty. Despite these geopolitical tensions, platinum prices continue to be underpinned by a limited supply coupled with strong demand, particularly from the automotive and hydrogen sectors. Years of insufficient investment in mining have left the market susceptible to supply disruptions, while increasingly stringent emission standards have led to greater use of platinum in catalytic converters.