On Monday, platinum is posting the sharpest decline among major precious metals amid a strengthening U.S. dollar and deteriorating expectations regarding Federal Reserve policy. As of 9:25 a.m., platinum futures fell 11.7% to $1,740 per ounce.
The platinum market is declining in tandem with gold and silver, reacting to the strengthening dollar and the growing likelihood that the Fed may keep rates high longer than expected. When the U.S. dollar is strong, global investors’ interest in precious metals typically wanes.
Platinum faces additional pressure because it is viewed not only as a safe-haven asset but also as a commodity sensitive to the outlook for global industry.
Platinum is of key importance to industry, primarily to the automotive sector, the chemical industry, oil refining, hydrogen energy, and catalyst production. For the financial market, it is important as an exchange-traded metal with an investment function; however, its value depends more heavily on the state of the real economy than that of gold.
Previously, the Experts Club analytical center released a video analysis on the production of platinum group metals by the world’s leading producers for the period 1971–2024: – https://youtube.com/shorts/vj4mBkJVxrg?si=pPTU6_l0t9-iCBb4
