Precious metals are underperforming today as the US dollar strengthened. USD has erased some of the gains, allowing precious metals to trim part of the losses. Nevertheless, precious metals continue to trade lower with gold dropping 0.2% while silver and platinum are dropping 0.8%. Release of US data pack for December at 1:30 pm GMT, including core PCE inflation, is likely to trigger some USD volatility, and it should also lead to more action on the precious metals market.
Taking a look at the PLATINUM chart at D1 interval, we can see that the price of this precious metal has dropped below the $1,030 support zone yesterday and is now trading back within a recent range. Bulls managed to recover some gains and push the price off daily lows today but, unless a break back above $1,030 zone is delivered, the next move from a technical point of view could be a pullback towards the lower limit of the range ($970 area). A potential higher-than-expected US PCE reading may benefit the US dollar and this, in turn, should exert pressure on precious metals.
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PLATINUM at D1 interval. Source: xStation5
