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Platinum market shifts to deficit in H2 2026 amid Fed rate hike fears and rising industrial demand.

Market News
09 Sep 2026
Kitco
View Source
Neutral
Platinum market shifts to deficit in H2 2026 amid Fed rate hike fears and rising industrial demand.

Inflation fears and expectations of Federal Reserve rate hikes have pressured platinum prices, causing a 24% drop in the first half of 2026. Despite this, the World Platinum Investment Council (WPIC) reports the platinum market fundamentals remain tight, with a modest surplus forecast for 2026 but a shift to a deficit of 283,000 ounces expected in the second half due to resumed buying and constrained supply. Industrial demand, especially from AI-related sectors, is rising sharply, supporting the market. Limited mine supply growth and improving investment demand could tighten the market further, making platinum a resilient and potentially higher-return alternative to gold amid economic uncertainties.

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