Platinum surges 4%📈

Expectations for U.S. interest rate cuts, record-breaking gold prices approaching almost $3,790 per ounce, and a weakening dollar are fueling euphoric gains in the platinum market, which is up 4.3% today. During the recent days, gold ETF net inflows reached the highest level since 2021.

• The prospect of lower interest rates in the U.S. (as well as rate cuts in other central banks) supports global liquidity and credit impulse, which naturally translates into higher demand for spot platinum – not only for investment purposes but also for industrial and automotive applications.
• Today’s U.S. data came in weaker than expected (September PMI, Richmond Fed regional index), while Federal Reserve officials (including Michelle Bowman) pointed to rising risks of significant labor market deterioration, which could force the Fed into even more aggressive moves. Investors are now pricing in at least two more rate cuts in the U.S. this year.
• Soaring gold prices are not only boosting interest in precious metals in general but are also bringing platinum “back into favor” in the jewelry sector. Interest in platinum as a “luxury,” cheaper, and rarer alternative to gold has risen after years of dormant demand for white-gold jewelry.

Platinum (charts)

Platinum prices are up nearly 5% today, surging to previous record highs around $1,480 per ounce, where the first strong wave of selling pressure has emerged.

Source: xStation5

Platinum prices (gold-colored chart) are moving broadly in line with gold’s dynamics, though volatility is higher and price movements are more abrupt.

Source: xStation5

Source: xStation5