Platinum
Platinum climbed to the highest level since February 2022 (based on closing prices) last week after breaking above $1,100 per ounce area. This zone is currently being tested as a support. From a fundamental point of view, the outlook for platinum looks bright - use of platinum in new eco-friendly technologies increases and it could serve as a long-term demand fuel. Outlook for platinum rebound has been bleak for years as the outlook for the automotive sector was bleak, especially for cars with diesel engines. However, the situation is changing.
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Open account Try demo Download mobile app Download mobile appPlatinum is more and more often used in production of catalytic converters for combustion engines. While the automotive sector is still the main driver of demand, long-term forecasts for the sector point to a switch to fuel-cell engines. From a supply side point of view, platinum output should be stable (lack of production issues in South Africa or Russia). On the other hand, there are some questions over future demand. ETF demand is one of such questions as recovery here could drive a platinum market deficit. Drawing on stock market terminology, it is said that platinum is a precious metal for 'value-oriented investing' while gold is a precious metal for 'growth-oriented investing'.
Platinum trades over 10% higher month-to-date is the best performing precious metal in this month. However, some struggle can be spotted at the beginning of this week with the $1,130 area turning to be a tough resistance and the price pulling back to $1,100 area. Should bulls regain control over the market, the next target for the upward move could be $1,200 per ounce area.
Source: xStation5
Gold
When it comes to gold, this precious metal has been pressured recently by uncertainty over the upcoming Fed decision. It looks like a rate hike at the May meeting is a done deal but at the same time one cannot rule out the possibility of the Fed deciding to halt the rate hike cycle. This could provide gold with fuel for gains. On the other hand, a strong technical reversal signal may be generated on a monthly interval after April with potential triple top surfacing on the chart. As one can see in case of two recent highs, long upper wicks of monthly candlesticks in $2,000 area heralded a drop of around 300 USD per ounce. That's why this level should be watched in late-April and early-May when a monthly candlestick closes and Fed meets.
Source: xStation5
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