FX.co ★ Platinum Falls as Investors Take Profits

Platinum experienced a downturn to approximately $1,600 per ounce on Friday, marking its second consecutive session of losses as investors opted to capitalize on recent gains from a significant rally. The precious metal market has witnessed substantial increases in recent weeks, with both gold and silver achieving new record highs. This surge has been largely fuelled by apprehensions surrounding the extended US government shutdown and the anticipation of further interest rate reductions by the Federal Reserve, which has bolstered demand for safe-haven assets. Additional support for these metals has come from escalating political instability in major economies, along with rising global deficits and debts. Despite the ongoing shift towards electric vehicles for the long term, immediate demand for platinum within gasoline vehicle catalysts remains strong, thanks to impressive sales of hybrid vehicles. Looking ahead, the World Platinum Investment Council forecasts a decline in platinum mine supply, with a compound annual growth rate of -1.5% projected between 2024 and 2029.