Platinum prices declined in European trade for the second session to three-month lows as the dollar strengthened against a basket of major rivals following strong US inflation outlook data.

Industrial metals remain under pressure from negative outlook for actual demand as the global economy faces recession risks.

Prices Today

Platinum prices fell 1.1% to $923.15, a November 4 lows, with a session-high at $937.44, after losing 2.6% yesterday, the fourth loss in five days.

The Dollar

The dollar index rose 0.4% on Wednesday against most major rivals, hurting dollar-denominated commodity futures.

Dollar's advance comes after strong US consumer data in January, showing the Federal Reserve's battle with inflation isn't over yet.

Fed officials said on Tuesday the Fed will have to continue raising interest rates gradually to overcome inflation, probably more than estimated before.

After the inflation data, pricing for a 0.25% Fed rate hike in March rose from 88% to 92%, while pricing for a 0.25% hike in May rose from 68% to 77%.

Actual Demand

Nearly 41% of global platinum demand comes from the car sector, which was hurt recently by higher prices and lower demand.

Actual demand on platinum remains murky as the global economy faces recession risks, threatening industrial activities worldwide.