As per the technical chart, platinum prices have stayed trapped within a rather small range despite persistent market shortfalls. Over the last three years, the precious metal's price has ranged from $850 to $1,150 per ounce, with an average of about $962/oz, which is near the present spot price.
Despite challenging market conditions, this steadiness has continued, confounding market observers who anticipated a price increase.
Platinum (XPTUSD) Bullish Possibility
According to some prominent analysts, high above-ground stockpiles are the main cause of this lack of increasing momentum.
By the end of 2023, these holdings are expected to reach approximately 4.034 million ounces, according to information compiled by the World Platinum Investment Council.
Even if the autocatalyst scrap supply is anticipated to rebound, the projection for 2025 indicates that the platinum industry will continue to be undersupplied.
Moreover, cars being discarded roughly 15 years after manufacture is usually linked to additional supplies from used catalytic converters.
This cycle was upset by the pandemic, which slowed the production of new cars between 2020 and 2022, extending the lifespan of older cars.
How Inflation Could Affect The XPT Price?
Excessive inflation and higher rates of interest have made the problem worse, squeezed household budgets, and increased demand for used cars as opposed to new ones.
Since the greater queue of older automobiles on the road will eventually need to be scrapped, analysts predicted a moderate rebound in secondary supply for the upcoming year.
However, they also caution that if these vehicles are used any longer, the market will continue to be constrained and the quantity of platinum that can be recycled will continue to be limited.
Nevertheless, until declining interest rates encourage more robust industrial activity, the metal will probably fare worse than gold.
Platinum Price (XPTUSD) Technical Analysis
A potential buying pressure is visible in the daily chart of XPTUSD as the current price hovers above crucial dynamic lines.
In the recent times, the Platinum price showed a massive sell-side liquidity sweep from the August 2024 low and formed a new monthly high. Also, the the price showed a bullish reversal this week, having a daily candle above the 50 day Exponential Moving Average.
Following the current range breakout, there is a daily close above the MA wave consisting of 150 to 200 numbers. As the bullish break is potent above crucial dynamic lines, investors might expect a bullish continuation toward the 1060.00 level.
In this context, minor downside pressure is possible from the 1017.53 resistance level, but another bullish reversal could appear from the 970.00 to 950.00 zone. However, an immediate bearish reversal with a valid daily close below the 50-day EMA could lower the price towards the 899.21 support line.
