Platinum Rises to 3-Week High

Platinum futures rose to around $1,670 an ounce, reaching more than a three-week high as softer US inflation data offset concerns over the escalating Middle East conflict. US producer prices unexpectedly fell in June for the first time in nearly a year, and together with surprisingly soft consumer inflation, an interest rate hike this month by the Federal Reserve has been effectively ruled out. This weakened the US dollar to a one-month low, boosting demand for dollar-denominated commodities such as platinum. However, the escalation in hostilities between US and Iran kept oil prices sharply higher, maintaining pressure on the inflation outlook. Meanwhile, platinum prices continued to draw support from expectations of a fourth consecutive global supply deficit this year, as constrained South African mine output, limited recycling supply, and dwindling above-ground inventories kept the physical market tight. Industrial demand also remained resilient, supported by the automotive sector.