Platinum falls back toward $1000/oz

NEW YORK (Mar 11)  Since the December 2021 low of $900/oz, platinum prices have risen a dramatic 19% as the precious metal sector rallies due to the geopolitical tensions between Russia and Ukraine. Platinum and palladium are produced in Russia and with sanctions being enacted the supply chain will inevitably lose some producers. Russia has recently said they will stop commodities exports till the end of the year too, so that is another blow to consumers.

On the technical front, the price hit a hard resistance at $1177/oz. This area was in the middle of the congestion zone from Q1 2021 and it seems to have come back to haunt the platinum bulls. As you can see from the volume profile indicator on the right-hand side of the chart it was the volume point of control (VPOC) from that distribution. The price then proceeded to smash through the next support at the green shaded area and trade back in a lower distribution zone.

The next major support is at the red horizontal line at $1019/oz. There could also be a trendline retest and the buys could step in slightly earlier. Either way, it is fair to say the bulls are still in charge of this market, and the move down is still considered a retracement and not a reversal.

KITCO