Platinum price remains on the downtrend that has persisted for close to two months now. Following the bounce-back of the US dollar, coupled with the rising COVID-19 cases in China, the dual-status metal has erased some of the week’s gains.
In the first half of the week, platinum price has been on a rebound following the easing of US dollar’s rally. In fact, this trend was observable in the broader class of the dollar-priced commodities. Assets ranging from crude oil to grains and precious metals have been in the green since late last week.
However, the some of those gains have been erased after the greenback’s bounce-back in Wednesday’s session. As at the time of writing, the dollar index was at $107.05 after hitting an intraday low of $106.41.
While the current week is rather easy on the influential economic data, investors are keen on the ECB and BOJ interest rate decisions scheduled for release on Thursday. The US dollar will likely remain strong against its rivals as the Fed maintains an aggressively hawkish stance compared to other major central banks. If that happens, platinum price will continue on its current downtrend characterized by lower highs and lower lows.
At the same time, the rising cases of COVID-19 in China will also continue to weigh on platinum and other industrial metals. Authorities in the Middle Kingdom reported 1,012 new coronavirus infections for Tuesday, which is the highest level in two months.
Platinum price prediction
Platinum price has eased after three consecutive sessions in the green. Earlier on Wednesday, it hit an intraday high of 870.86 before easing to 841.65 as at the time of writing. In the past week, it flirted with the critical support level of 800; trading at a two year low of 806.01.
On a daily chart, platinum price is trading below the 25 and 50-day exponential moving averages. Besides, it has remained on a descending channel since early June when it plunged below the psychological level of 1,000. With the lower highs and lower lows, the downtrend will likely continue in the short term.
In particular, the range between 822.40 and 850.82 will be worth watching in the ensuing sessions. Even with a rebound past the range’s upper border, it will likely continue to face substantial resistance at 876.29 in the short term. Notably, the aforementioned level is along the 25-day EMA. On the flip side, platinum price may remain above 805.75 as the bulls strive to defend the crucial support zone of 800.