Platinum futures for January 2027 delivery traded at $1,510.30, down 2.27% from the previous session close. Market participants point to elevated crude costs as a driver of inflation fears before the central bank meets. The strong US dollar adds further pressure to platinum prices, according to market participants.
Strategists note that losing the $1,530 threshold exposes the $1,200 to $1,350 area as the next major support. A continued drop below the $1,500 midline of the descending channel increases the risk of a decline to $1,350. Conversely, if the price recovers back above $1,530 after testing lower levels, it may confirm a bottom and open the way for $1,900.
The US Dollar Index stood at 102.22, up 0.26% on the day, having rebounded from key support. The 10-year US Treasury yield consolidated around 5.00%, while the 2-year yield was 4.68%. Traders on prediction markets priced a 93% chance that the Fed holds rates at its October meeting.
Crude values retreated on Tuesday amid diplomatic discussions regarding Middle East stability, offering slight respite to the metal. However, continued attacks on Saudi Arabia fuel tensions that may ignite another rally in oil. Such a scenario could increase expectations of further tightening by the Fed, maintaining pressure on platinum prices.
Analysts state that a break above $1,900 opens the way for upside towards the $2,170 to $2,300 region. Soft inflation data may also create a short-term rebound, though strength in oil prices remains a risk.
Market participants watch the US FOMC Rate Decision due at 18:00 UTC on Wednesday, October 28. The US Core PCE Price Index and GDP Price Index releases are scheduled for Thursday, October 29.
Sources: Yahoo Finance quotes, US Treasury, Kalshi, ForTraders economic calendar.
