Platinum Prices Hit 11-Week High on Weak Dollar and Renewed Demand

Platinum prices surged on August 21, reaching an 11-week high of USD 1,870/oz. The increase was driven by a weaker US dollar and renewed demand for precious metals.

The US dollar came under pressure due to concerns over the US fiscal outlook and investor skepticism about the Treasury's expanded bond-buyback program. Lower yields earlier in the week also supported demand for non-yielding assets, while expectations that the Federal Reserve could leave interest rates unchanged in September provided additional support to precious metals.

Platinum's supply-demand balance remains tight, with persistent market deficits and low inventories limiting available metal. Geopolitical tensions in the Middle East and elevated oil prices add to inflation and economic uncertainty, supporting safe-haven demand for platinum.