Platinum, once regarded as the "gold of the wealthy," has undergone a turbulent voyage in the precious metals market. Despite commanding a substantial premium over gold from the 1970s to 2010, platinum has been unable to regain its former luster despite its industrial significance and scarcity.
Platinum Lagged Gold & Silver
Despite reaching new highs in gold and silver, platinum has lagged. The divergence in performance highlights the distinctive obstacles that PGMs encounter as they pursue a stable bottom.
Platinum prices attained an all-time high of $2,308.80 per ounce in 2008. Nevertheless, the metal has been unable to surpass the $2,000 threshold since that time, and it has not traded above $1,500 per ounce since 2014. Platinum has maintained an equilibrium at approximately $1,000 for nearly a decade. This pivotal point was just below platinum prices as of the conclusion of Q2 2024, which indicates a protracted period of stagnation.
The platinum futures market demonstrated some signs of vitality in Q2 2024, with a modest 0.69% increase over the first half of the year and a 10.38% rally. Nevertheless, platinum's recovery was tempered by a 7.33% decline in 2023, suggesting that the path to recovery is still questionable. The October NYMEX platinum futures are trading at the $1000.00 level, indicating a sideways trend.
Platinum Recovery: What Can We Expect?
In the future, platinum may experience a favorable recovery due to a variety of factors. The metal's lower liquidity in comparison to gold and silver may result in increased volatility and potential price increases when market conditions improve. Furthermore, supply chains may be affected and prices may increase as a result of geopolitical tensions, particularly those that involve Russia. Platinum's long-term prospects are also bolstered by the industrial demand for the metal, which spans from electronics to renewable energy initiatives.
Platinum's voyage has been distinguished by substantial obstacles; however, its distinctive industrial applications and potential supply constraints indicate that this precious metal may still have its day in the sun.
Platinum Price (XPTUSD) Technical Analysis
In the daily chart of XPTUSD, the recent Platinum price shows a bullish break of structure at the 1013.85 level, making a new high at the 1095.28 level. Later on, a downside correction came below the 20-day Exponential Moving Average, suggesting a deeper correction. In the most recent days, the price hovers at the dynamic area from where a fresh trend might appear.
On the bearish side, the high volume line is at the 904.96 level, which might work as a target level as a mean reversion. Moreover, the 100-day Simple Moving Average is the major support, which is just above the 946.00 static level. As the current price hovers above this crucial line, a failure to break the trendline resistance could lower the price at the 946.00 static line.
On the bullish side, a valid trendline breakout with a daily candle above the 1017.04 swing could validate the long-term bullish possibility, targeting the 1095.28 resistance level.
