Platinum loses over 1.3% ⏬

🔴 Platinum responds to an uptick in yields and a strong dollar

Platinum and palladium are currently the most oversold metals. Even industrial metals are currently doing significantly better. Interestingly, during today's session, we do not observe significant declines in the price of gold or silver.

Platinum and palladium are mainly used in the automotive sector for building catalytic converters. In recent months, the automotive sector has been doing increasingly worse, which we can notice in the stock prices, including those of German manufacturers. Automotive companies are cutting the prices of their vehicles, which is related to limited demand that has significantly decreased after the growth wave from 2020-2022. Interestingly, even Tesla is making significant cuts to the prices of its cars, which is related to limited demand.

The price of platinum is dropping by 1.3% today (palladium is losing 2%) and is most likely heading towards its recent local lows, below 900 USD per ounce. Recently, we have observed a much stronger correlation between platinum and bond prices (TNOTE) than with gold prices. Very important support is found around 840 USD per ounce, where local bottoms from last fall are located. A rebound in the price of platinum will only be possible when yields start to fall again (bond prices rise), which will also stimulate the prices of gold and silver.

Source: xStation5