FX.co ★ Platinum Hits 1-Month High

Platinum futures rose to over $1,373 per ounce on Monday, hitting a one-month peak, driven by the anticipation of an interest rate cut by the US Federal Reserve, which bolstered the appeal of precious metals. San Francisco Fed President Mary Daly indicated last Friday that the central bank is ready to reduce borrowing costs due to labor market risks, though she also remarked that tariff-induced inflation might be temporary. Currently, the probability of a 25 basis point rate cut later this month is estimated at around 88% in the markets. Concerns over supply also played a role in supporting prices, with platinum experiencing a deficit for three consecutive years as demand consistently surpasses production. The World Platinum Council anticipates a further deficit of approximately 848,000 ounces by 2025. On the demand front, platinum's importance is reinforced by its key role in hydrogen fuel cell technology and the global shift towards green energy solutions.