Gold Surpasses Platinum as Rate-Hike Expectations Fade
The gold-to-platinum ratio has seen a significant increase, reaching 2.5308 as of today's session. This reflects gold's continued outperformance over platinum due to diverging macro and fundamental forces.
Gold's rally is attributed to fading rate-hike expectations and safe-haven demand, which is boosted by the Federal Reserve holding interest rates steady at its September meeting.
The platinum market, on the other hand, faces renewed selling pressure from profit-taking after a multi-week recovery rally. Concerns about softening automotive demand and the accelerating penetration of electric vehicles have added to near-term caution.
The broader market backdrop also contributed to gold's relative strength, with U.S. equities under pressure and the U.S. dollar lingering near multi-month lows against major currencies.