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.