Platinum is standing out today among other precious metals as it gains over 1.7% higher on the day. Other precious metals are experiencing much smaller, if any, gains today - gold trades 0.3% higher, silver adds 0.1% and palladium trades flat. Platinum's outperformance today is somewhat puzzling, as it is not accompanied by any kind of commodity-specific news. However, the technical situation on the chart may be justifying the move.
Taking a look at the PLATINUM chart at D1 interval, we can see that the price bounced off the $890 per ounce support zone that had limited downward moves a few times since mid-2023. Demand-side price reaction to this area, and the overall inability of PLATINUM to deliver a longer-lasting breakout from the $890 - 935 range, highlights investors' concerns over the future direction for the commodity.
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Create account Try a demo Download mobile app Download mobile appOutlook for the monetary policy is mixed - the next Fed's move is almost certain to be a rate cut, which should be negative for the US dollar and, in turn, positive for precious metals. However, recent comments from Fed members, including Fed Chair Powell, suggested that a cut may not be as imminent as some have hoped, and this provided support for the US dollar while also putting pressure on precious metals. Uncertainty is also present when it comes to industrial demand for platinum as global economy seems to be slowing down.
Based on the recent price action, it looks like PLATINUM may now move towards the upper limit of trading range in the $935 area. This is also the near-term resistance zone to watch, marked with 50- and 200-session moving averages. On the other hand, should the current rebound fade and the stock drops below the aforementioned $890 support zone, the next level to watch for sellers can be found in the $840 area.
Source: xStation5
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