Platinum holds losses on easing haven demand

Platinum futures hovered near $1,330 per ounce on Tuesday, consolidating recent losses as optimism over Ukraine peace negotiations reduced safe-haven demand.

Earlier this week, U.S. President Donald Trump met with European leaders to discuss a framework of security guarantees for Ukraine and signaled that he had spoken with Russian President Vladimir Putin about arranging a direct meeting with Ukrainian President Volodymyr Zelenskiy.

A possible trilateral summit is now being floated, and while no timetable has been set, the prospect of continued diplomacy has eased some geopolitical risk premiums in precious metals markets.

At the same time, attention is turning to the Federal Reserve’s annual Jackson Hole symposium, where global policymakers are expected to debate the evolving balance between labor market softness, inflation stability, and the timing of monetary easing.

With investors increasingly betting on multiple Fed rate cuts by year-end, platinum’s trajectory could hinge on how dovish a signal Fed Chair Jerome Powell provides. A larger-than-expected September cut — potentially 50 basis points — would likely weaken the dollar and lift industrial metals, including platinum.

Despite the near-term drag from improved risk sentiment, supply-side concerns continue to underpin platinum prices. South Africa, which accounts for roughly 70% of global mine output, is facing persistent operational challenges.

Heavy rainfall, ongoing electricity shortages tied to Eskom’s unstable grid, and intermittent water supply disruptions have forced several producers to scale back operations. Analysts project South African platinum production will decline by around 4% in 2025 compared with last year. Recycling flows, another key source of global supply, have also remained muted as higher collection and refining costs constrain secondary output.

On the demand side, platinum remains supported by strong use in the automotive industry, where tightening emissions regulations continue to underpin demand for catalytic converters. Beyond this, structural growth in green technologies — particularly hydrogen fuel cells — is expected to provide a long-term tailwind, even as short-term pricing is dominated by macro and geopolitical headlines.

Overall, platinum’s near-term outlook will be determined by two opposing forces: easing geopolitical risk and dovish Fed expectations pulling prices lower, versus structural supply shortages and industrial demand offering support. Market participants will be watching both Jackson Hole and further developments in Ukraine peace talks for direction.