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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMODITIES
- Platinum has had a solid run higher in the past year, trading 42% above June 2020 levels, aided by a weaker dollar, net supply deficit and the reflation trade – now trading at $1,183/Oz
- However, momentum seems to be turning in the near-term for platinum as investors pivot back to gold after confirming a double bottom formation in March.
- In mid-May, the RSI fell below the 50 line in platinum, signalling a move from bullish to bearish momentum and boosting the likelihood of a near-term correction.
- Gold currently trades +11.50% y/y at $1,893/Oz, lagging its more volatile peer by roughly 30% y/y but has been closing the gap in recent weeks from a peak of 50% in march.
- With talk emerging about possible tapering at the Fed, PGMs have had a relatively muted start to June – which could face more headwinds if we see USD strength return.
- Additionally, demand figures out of china continue to decline with the copper import premium extending its run of declines to $28/ton, the lowest in data from Shanghai Metals Market that goes back to 2017.
- However, while this may see near-term corrective pressure mount on platinum. Miners are still forecasting strong medium to long-term fundamentals from increased EV demand and lower supply from a net production deficit.
- Key support is seen at $1,169 for platinum, opening up a deeper correction towards robust support in the $1,130-1,083 zone where buyers may find the precious metal more attractive.
% Change Gold Vs Platinum
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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