Platinum follows gold lower and drops almost 3% today
Platinum, precious metal used in the production of catalytic converters for the automotive sector, is dropping almost 3% today. Declines can be reasoned with a strong pullback on the gold market. Gold dropped below $1,800 yesterday and the downward move is being continued today. Recent underperformance of precious metals is a result of rising US yields and USD strengthening. Interestingly, platinum is more vulnerable to changes in sentiment towards precious metals, while it should be more vulnerable to changes on the industrial metals market. Meanwhile, industrial metals continue to trade at relatively high levels.
Platinum has declined over 8% off recent peak at $1,340. Price is pulling back into the upward channel. The closest support can be found at $1,200 and is marked with 2016 highs. While platinum is trading in tandem with gold today, it has not always been the case earlier in 2021. Source: xStation5
