Platinum rose more than 5% from the October bottom, but its overall performance against other precious metals seems weak in the last couple of months. The Platinum/Gold ratio fell close to 0.45, which is the main support of the post-COVID era, much like Platinum/Silver testing the 38 mark. These are key levels to watch for platinum going forward.
Over the long term, the adoption of electric vehicles represents a major bearish change for platinum. However, the next two years could bring an upside with a recovering manufacturing and auto sector, in addition to central bank rate cuts, possibly starting next summer. The possible manufacturing sector recovery could also bolster platinum against gold.
Platinum tested a major support this month, touching both the lower line of the long-term triangle formation and the 61.8% level of the 2020-2021 surge. The level 860 will continue to be the major support to watch, and as long as it holds, platinum has a chance to rise. At 923, which is the current level of the recent trendline, we find the first key resistance. A breakout could cause prices to rise towards 952 and 990 over the medium term. Traders should also keep an eye on the platinum/gold and platinum/silver ratios for any signs of a reversal from key support levels.
