03.08.202602:29:42UTC+00Platinum Rises to 6-Week High

Platinum futures climbed above $1,660 an ounce, reaching a six-week high as precious metals advanced broadly following a pullback in oil prices amid renewed optimism over a possible Middle East peace agreement. US President Donald Trump said peace talks with Iran would resume after key Middle Eastern allies pressed for a diplomatic solution and the reopening of the Strait of Hormuz.

At the same time, markets continued to price in a Federal Reserve rate hike later this year, even though policymakers left interest rates unchanged last week. Several Fed officials cautioned that delaying action for too long could necessitate more aggressive tightening down the line.

The platinum market, however, faced headwinds from expectations of weaker industrial and automotive demand, despite a generally tight supply outlook. The ongoing transition toward electric vehicles, which do not require autocatalysts, has dimmed demand prospects. This comes even as the market is projected to record a fourth consecutive annual supply deficit, driven by constrained mine output and shrinking above-ground inventories.