Make Kitco Your Homepage

Contributed Commentaries

Platinum faces economic realities: price breaks key support, signaling recession ahead

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

Platinum has broken below a major trend line of support going back to the 2020 (Covid) lows. With two weekly lower closes below the trend line, price is likely going to continue to struggle. Considering the economic optimism in the United States, the price action reflects a reality US investors and the Federal Reserve have yet to grasp. A recession is coming. As global economic conditions worsen from Germany to China, price action is telling investors demand will continue to decline and price should follow.

First support on Platinum is at $835oz, however if the economic data in the United States starts to more closely reflect the global picture (jobs market cracks), downside could see $760/oz (2008 lows).

The bull case on a chart basis can only be recaptured above $1,085/oz. This would be a breakout above a trend line stretching back to the 2008 high, connecting the 2021 highs and the recent 2023 highs.

For more technical analysis on metals, crypto, stocks and macro, follow me on Twitter @GarethSoloway or check me out at VerifiedInvesting.com or InTheMoneyStocks.com.

By

Gareth Soloway

Contributing to kitco.com

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.