Platinum pulls back from two-week high

Platinum futures slipped below $1,330 per ounce on Monday, retreating from a two-week high as easing geopolitical and trade concerns reduced safe-haven demand.

Investors shifted focus to U.S. President Donald Trump’s upcoming meeting with European leaders, aimed at advancing negotiations on a potential peace framework with Russia.

Although Friday’s talks between Trump and Russian President Vladimir Putin in Alaska failed to produce a ceasefire breakthrough, Putin’s agreement to allow the U.S. and Europe to provide Ukraine with security guarantees was seen as a small step toward a possible settlement, helping temper risk aversion in commodity markets.

On the trade front, sentiment improved after Washington secured bilateral deals with several major economies that effectively prevented the immediate imposition of steep tariffs. The agreements reduced fears of a global trade war, contributing to a broader rebound in equities and industrial commodities, which in turn dampened demand for platinum as a safe-haven asset.

Still, prices remain underpinned by structural supply constraints. Persistent operational disruptions in South Africa — which accounts for roughly 70% of global mine supply — continue to weigh on output. Heavy rainfall, persistent power cuts linked to Eskom’s ongoing grid instability, and localized water shortages have already forced several mining companies to scale back production.

Industry analysts now expect South Africa’s platinum output to decline by around 4% in 2025 compared to the previous year. Recycling activity, another important source of global supply, has also remained subdued as high collection and processing costs deter secondary producers, tightening availability further.

On the demand side, platinum continues to benefit from its role in the automotive industry, particularly in catalytic converters for hybrid and diesel vehicles, as well as in hydrogen fuel cell technology. While the near-term outlook is being shaped by macroeconomic and geopolitical developments, the longer-term trajectory remains supported by growing industrial and green energy applications, alongside constrained supply growth.

In the short term, traders will be closely watching the outcome of Trump’s talks with European leaders, as well as signals from the U.S. Federal Reserve, which is widely expected to resume rate cuts. A more dovish policy stance could lend additional support to platinum by weakening the dollar and bolstering broader precious metal demand, even as geopolitical risk premiums fluctuate.