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Platinum Update: Still Discounted to Gold


Platinum still remains discounted to gold.

Christopher-LemieuxSMBullion.Directory precious metals analysis 8 April, 2015
By Christopher Lemieux
Senior Analyst at Bullion.Directory; Senior FX and Commodities Analyst at FX Analytics

Roughly a month ago, Platinum began to trade at a discount to gold on weak demand. The spread between the two precious metals at the time were the widest in two years. Price action has been able to bounce off weekly resistance, but sentiment on the shiny metal remains weak.

A catalyst was needed for platinum to rally strong, but that is still to be seen. The move higher on platinum seems to stem from technical buying more than anything. In “Platinum Trades Discount to Gold,” I mentioned that prices were “comfortable” hovering in or around oversold territory. The weekly RSI has reached 40, but it could begin to see some resistance if the demand outlook remains week and the dollar does not  weaken.

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After reaching the support target of $1,087, price action bounced on heavy volume but is stagnant at $1,168 per ounce. Further upside to $1,200 is probable if the near-term trend can continue with dynamic resistance sitting at the 20-week EMA. Additional resistance will be found at the minor downtrend (dotted line). If prices begin to falter, a retest of $1,087 is likely with $1,015 per ounce being the last support before sub-$1,000.

The ABX momentum indicator and the – DMI is signalling confluence.


The negative price action looks to be loosening its grip on platinum. It is likely to stay range bound.

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