Platinum Extends Losses to 7-Month Low

Platinum futures fell further below $1,580 an ounce, hitting a fresh seven-month low and heading for steep second straight monthly and quarterly losses as Middle East uncertainties and wagers of US interest rate hikes dampened demand. Precious metals have broadly weakened since the Federal Reserve adopted a more hawkish stance this month, prompting markets to price in three rate hikes this year, with the first potentially coming as early as September. This makes the dollar stronger, making dollar-denominated commodities more expensive for buyers of other currencies. Meanwhile, persistent concerns that disruptions to energy flows through the Strait of Hormuz could fuel global inflation have reinforced expectations that interest rates will stay higher for longer, weighing on non-yielding metals. While US and Iran are scheduled to resume peace talks, a major sticking point remains after Tehran reiterated its plan to oversee traffic through the Gulf even if Oman decides not to take part.