Platinum prices fell Wednesday, with futures dropping below $1,740 per ounce. This price level marks a two-week low for the precious metal.
Escalating military tensions between the United States and Iran drove the market shift. Brent crude surged above $95 a barrel as the conflict intensified global inflation concerns.
The U.S. dollar strengthened while the 10-year Treasury yield rose to approximately 4.8%. These factors increased the probability of a Federal Reserve interest rate hike in September to 70%.
Tighter monetary policy pressures non-yielding assets like gold and platinum. Higher interest rates increase the opportunity cost of holding these metals.