How Inflation Expectations Move Platinum Prices

Platinum prices often climb when people expect inflation to rise because investors see the metal as a safe store of value, much like gold. When inflation looks likely, holding cash loses appeal since its buying power drops, so buyers turn to precious metals that do not pay interest but hold worth over time.https://news.futunn.com/en/post/66352937/gold-and-platinum-surge-together-rate-cut-expectations-and-geopolitical

Central banks like the Federal Reserve play a big role here. Softer inflation data, such as recent U.S. reports showing prices rising slower than expected, boosts hopes for interest rate cuts. Lower rates mean weaker returns on bonds and savings, pushing money into platinum. For example, after November inflation came in at 0.2% instead of the predicted 0.3%, platinum jumped 1.4% to $1,924.88 per ounce, a 17-year high.https://energynews.oedigital.com/mining/2025/12/18/silver-nears-record-high-as-gold-falls-on-dollar-firmness-ahead-of-us-inflation-data https://www.finnewsnetwork.com.au/amp/NewsItem/3492230

Rising inflation expectations also weaken the U.S. dollar and real interest rates, both of which lift platinum. A softer dollar makes platinum cheaper for buyers using other currencies, increasing demand. Declining real rates, which factor in inflation, make non-yielding assets like platinum more attractive. Traders now see a good chance of 63 basis points in rate cuts for 2026, fueling this trend.https://deriv.com/blog/posts/why-metals-are-surging-fed-uncertainty

Supply shortages add extra push when inflation fears grow. The World Platinum Investment Council predicts a third straight year of global deficits in 2025, with South Africa facing mining issues that limit output. Strong demand from cars, industry, and China jewelry keeps pressure on supplies, amplifying price moves from inflation bets.https://news.futunn.com/en/post/66352937/gold-and-platinum-surge-together-rate-cut-expectations-and-geopolitical https://www.heraeus-precious-metals.com/en/company/press-and-news/heraeus-precious-metals-forecast-2026/

Geopolitical risks and tariffs tie in too. Tensions like those in Venezuela or U.S. tariff plans raise inflation worries by disrupting trade, driving more interest in platinum as a hedge. Physical market stress, such as metal moving to the U.S. for safety, tightens availability further.https://news.futunn.com/en/post/66352937/gold-and-platinum-surge-together-rate-cut-expectations-and-geopolitical

Forecasts for 2026 show platinum in the $1,300 to $1,800 range per ounce, with deficits likely but narrowing from recycling gains. If inflation stays sticky, expect platinum to keep tracking these expectations closely, syncing with gold surges.https://www.goldenstatemint.com/blog/tame-u-s-inflation-gives-the-fed-room-for-more-rate-cuts-gsm-blog/

Sources
https://news.futunn.com/en/post/66352937/gold-and-platinum-surge-together-rate-cut-expectations-and-geopolitical
https://energynews.oedigital.com/mining/2025/12/18/silver-nears-record-high-as-gold-falls-on-dollar-firmness-ahead-of-us-inflation-data
https://deriv.com/blog/posts/why-metals-are-surging-fed-uncertainty
https://www.finnewsnetwork.com.au/amp/NewsItem/3492230
https://www.admis.com/gold-silver-fall-back-as-copper-drifts/
https://www.heraeus-precious-metals.com/en/company/press-and-news/heraeus-precious-metals-forecast-2026/