Platinum prices declined in European trade on Thursday, sharpening losses for the fourth straight session and plumbing a two-week trough as demand declines on non-yielding assets following the Federal Reserve's last meeting minutes.

Concerns are growing about weak actual demand on the metal, especially in China as industrial activities slow down. 

Platinum Prices Today

Platinum prices fell 0.9% to $966 an ounce, the lowest since December 22, after losing 1.2% on Wednesday, with most dollar-denominated metals losing ground.

Platinum hit a six-month high on December 28 at $1,015 an ounce before entering a long duration of correction and profit-taking. 

Platinum rallied 6.9% in December, the second monthly profit in three months on prospects of interest rate cuts by global central banks during 2024. 

Platinum tumbled 7.5% last year, the second yearly loss in the last three years as Chinese economy slows down.

The automotive sector alone constitutes 41% of global demand on platinum, however the sector slowed down recently amid higher prices and weaker demand. 

The Fed

The Federal Reserve's December 13 meeting minutes showed that policymakers believe interest rates should remain high for an extended duration.

Members believe that interest rate cuts would be more appropriate by the end of the year.

The minutes showed a clearly cautious stance on inflation and interest rates and hurt the odds of multiple early US interest rate cuts this year.

Following the minutes, the odds for the first US interest rate cut at the Fed March meeting fell slightly to 73%.

Actual Demand 

China's economy continues to suffer from weaker industrial activities even as authorities launch more financial and monetary stimulus measures, which could bear fruit in the second half of the year. 

Gold prices rose in European trade on Thursday for the first session in five days, holding above two-week lows as the dollar stalls against a basket of major rivals.

The gains come ahead of important US data later today, which will provide important clues on the current conditions of the US labor sector, and will also provide fresh clues on the path forward for interest rates. 

Pricing for a US interest rate cut in March 2024 dipped after the release of the Fed's meeting minutes, which were more bullish than expected.

Gold Prices Today 

Gold prices rose 0.4% to $2,049 an ounce, after losing 0.8% yesterday, the fourth drop in a row, and the largest since December 11, plumbing two-week lows at $2,030 as the dollar gained ground following the Fed's minutes. 

The Fed 

The Federal Reserve's December 13 meeting minutes showed that policymakers believe interest rates should remain high for an extended duration.

Members believe that interest rate cuts would be more appropriate by the end of the year. 

The minutes showed a clearly cautious stance on inflation and interest rates and hurt the odds of multiple early US interest rate cuts this year.

US Rates 

Following the minutes, the odds for the first US interest rate cut at the Fed March meeting fell slightly to 73%.

The Dollar

The dollar index fell 0.2% on Thursday away from a threw-weeik high at 102.73, on track for the first loss in five days against a basket of major rivals. 

Now investors await important US labor data on private sector employment, in addition to unemployment claims for last week. 

And crucially, the US payrolls report will be released Friday, which could provide fresh clues on the likely path ahead for US monetary policies. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 4.33 tonnes yesterday to a total of 874.21 tonnes, the lowest since November 13. 

The Federal Reserve's minutes of the December 13-14 [policy meeting, which ended with no change in interest rates at below 5.50%, now showed expectations of interest rate cuts worth 75 basis points in 2023, with five members even expecting more cuts. 

The minutes showed the members on average expect interest rates to fall to 4.6% by the end of the year. 

The minutes showed that policymakers believe interest rates have reached their peak, with upcoming decisions relying on economic developments. 

US stock indices edged down on Wednesday on profit-taking ahead of the Federal Reserve's meeting minutes.

Markets continue to follow the Federal Reserve's likely trajectory forward, awaiting the Fed's last meeting minutes to gauge future monetary policies.

The FedWatch tool showed a 89.1% likelihood that the Fed will maintain interest rates flat in January, with a 70.4% chance for an interest rate cut in May. 

On trading, Dow Jones fell 0.6%, or 240 points to 17:29 GMT to 37,482, while S&P 500 fell 0.6%, or 30 points to 4713, as NASDAQ shed 0.9%, or 129 points to 14,635.