27.10.202516:16:28UTC+00Platinum Pulls Back Amid Trade Optimism

Platinum recently stabilized around $1,560 per ounce, easing from its mid-October high of $1,722. This drop came as improved US-China trade relations reduced investors' need for safe-haven assets. President Donald Trump announced that the US and China are nearing a trade agreement, following a preliminary consensus reached by senior officials in Malaysia, in anticipation of their upcoming meeting in South Korea. Despite this recent dip, platinum boasts nearly a 50% increase in value this year, surpassing both gold and silver. This rise is attributed to supply shortages, consistent industrial demand, and investors looking for stability amid market uncertainties. The market is currently re-evaluating platinum, as it becomes the latest precious metal to see a surge in price amidst concerns of scarcity. Additionally, China plans to eliminate a long-standing tax rebate for China Platinum Co. from November 1, potentially allowing new competitors into the market. Simultaneously, expectations for a 25-basis point rate cut by the Federal Reserve on Wednesday have been bolstered by weaker-than-anticipated inflation figures for September.