Platinum (XPT/USD) price is making its way to retest the 200 MA. The price for the precious metal saw a massive 10.5% rally after it reclaimed the of $910-$1112 trading range after briefly breaking down. The safe-haven asset was priced at $975.5, up 0.21% at press time.
The DXY, which measures the strength of the dollar against major foreign currencies, is up 0.4% above its weekly low. Most of the time, the price of precious metals like Gold and Platinum is inversely correlated to the dollar. Due to the slight recovery in the dollar, the Platinum bulls lost momentum. However, the bulls are back in business once again.
The US reported a reduction in labor demand and a drop in the CPI for July. Thus, analysts are expecting the Federal Reserve to pause in rate hikes. This will likely increase the demand for safe-haven assets like Gold and Platinum as investors look for alternative ways to invest their money.
In other news, Platinum continues to face supply issues due to a lack of investment and operational difficulties. The World Platinum Investment Council anticipates a substantial deficit of 983,000 ounces in 2023, which is expected to leave a positive impact on Platinum price.
The price chart for XPT/USD shows that the pair has reentered the trading range of $910-$1112 after breaking below it on 8th August. The price is now rallying towards the middle of this range. The price for precious metals is currently only 3% below $1005, i.e., middle of the range.
The bulls can target the range high of $1112 if the price breaks through $1005. The chart also shows a potential resistance level at the 200 MA, which lies just before the range mid. The bears can expect a retest of the range lows if the price faces resistance at the 200 MA level.
In the meantime, I’ll keep sharing the updated Platinum analysis and my personal trades on my Twitter, where you are also welcome to follow me.
This post was last modified on Sep 01, 2023, 16:02 BST 16:02