Platinum prices advanced 2.9% in pre-market trading on Wednesday, lifting the spot price to $1,766.80 per ounce as the U.S. dollar weakened and Federal Reserve rate-hike expectations receded.
The metal’s rally follows cooler-than-expected U.S. Consumer Price Index data, which reduced the probability of a September rate hike to 33%, down from over 51% a month earlier. The dollar retreated toward the 100 level, a psychologically significant threshold, further supporting platinum’s gains.
Global platinum supply is projected to fall short by 297,000 ounces in 2026, marking the fourth consecutive annual deficit, according to the World Platinum Investment Council. Above-ground stocks are forecast to decline to 1.747 million ounces by year-end, equivalent to less than three months of global demand, underscoring tight market conditions.
Supply constraints are being exacerbated by power disruptions and maintenance delays at South African mines, while demand is being bolstered by AI infrastructure buildouts, data-center expansion, and increased hybrid vehicle production driving autocatalyst consumption.
Geopolitical tensions have added another layer of support, with Iran’s shift to an offensive military posture following stalled ceasefire talks with Washington raising concerns over regional stability and potential supply chain disruptions.
Platinum remains well below its 52-week high of $2,923.66 and January’s record, but the combination of macroeconomic tailwinds and structural supply tightness has driven the recent upward momentum. U.S. equity benchmarks, including the S&P 500, posted modest gains of 0.5% during the same session.
The rally extended to related assets, with silver futures up 1.4% and palladium futures gaining 0.23%, while platinum-linked equities such as Sibanye Stillwater and Anglo American Platinum advanced in early trading.
