Platinum futures climbed back above $1,700 an ounce, attempting to recover from a recent two‑month low as easing oil prices helped offset pressure from elevated US Treasury yields and a strong dollar. Softer crude prices, amid signs of improving energy supplies from the Middle East, are relieving some inflation concerns and tempering expectations for interest rates to stay higher for longer, which is providing support to non‑yielding metals.
Even so, Treasury yields remain high, with the US 10‑year yield near 5.24%, close to its highest level since 2007. Persistent energy‑driven inflation, a resilient US economy, and hawkish messaging from Federal Reserve officials have reinforced expectations of further rate hikes.
Platinum’s underlying fundamentals are mixed. The World Platinum Investment Council (WPIC) expects industrial demand to increase by 5% in 2026, while automotive demand is projected to decline by 4%, resulting in a forecast surplus of around 265,000 ounces. Over the longer term, demand is expected to be supported by the rapid expansion of artificial intelligence infrastructure and related technologies.
