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
The spot price of platinum exceeded $2,900 per troy ounce for the first time during trading on Monday amid growing demand for safe-haven assets due to fears of another US government shutdown.
As of 14:28 GMT, platinum was trading at around $2,888 per ounce after hitting a record high above $2,900.
The precious metals market is also being supported by expectations related to the financing of US federal agencies: the federal government is expected to run out of funds on January 31, and investors are assessing the risk that Congress will not approve a new financing package before that date.
Platinum is one of the key industrial metals: it is widely used in catalytic systems to reduce harmful emissions (including in the automotive industry), in petrochemicals and the chemical industry as a catalyst, as well as in the manufacture of electronics and in certain types of hydrogen technologies where corrosion-resistant and high-temperature materials are required.
Earlier, the Experts Club analytical center released a video analysis of the production of platinum group metals by the world’s leading manufacturers for the period 1971-2024, – https://youtube.com/shorts/vj4mBkJVxrg?si=pPTU6_l0t9-iCBb4
The rapid growth in the price of gold continues on global markets: December futures prices on the Comex exchange rose to $3,965 per troy ounce on Monday
Against the backdrop of rising gold prices, other precious metals are also becoming more expensive.
Platinum added about 0.8%, rising to $1,085 per ounce, on expectations of reduced supply from South Africa.
Silver strengthened by 1.2%, reaching $32.7 per ounce, following the general increase in interest in precious metals.
According to experts, if political uncertainty in the US and the EU persists, gold could consolidate above the $4,000 mark, with silver and platinum continuing to rise moderately in its wake.
Earlier, the Experts Club analytical center presented an analysis of the world’s leading gold-producing countries in its video on YouTube channel – https://youtube.com/shorts/DWbzJ1e2tJc?si=9YBue5CS6dz-tA6_
