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.
