The price of Platinum has advanced from $860 above $1070 since the beginning of November, and the current price stands around $1058. The U.S. Food and Drug Administration is likely to approve the coronavirus vaccine by the mid of December, and the Platinum price is expected to continue to be supported over the long-run.Fundamental analysis: Platinum is still cheap relative to other precious metals
Platinum price has advanced above $1000 in the first week of December, and the technical picture implies that the price may increase even more in the upcoming weeks. The FDA will probably approve the coronavirus vaccine in the next two weeks, but further turmoil should not be discounted for Platinum’s price.
News that the U.K. will start to distribute a coronavirus vaccine next week also adds further support to this precious metal. According to analysts, Platinum is still cheap relative to other precious metals, and the Platinum trades at a discount to the continuous commodity index.
Platinum has not seen a significant rise in price in the wake of the coronavirus crisis, during periods of economic uncertainty, the price of Platinum tends to decrease because of reduced demand. The price of gold and silver usually rises when the economy is in a slump, while Platinum’s chart shows the opposite.
It is essential to say that there are expectations that the demand will exceed supply in 2021 year, which is another indication that the price of Platinum could increase even more.
More than 75% of global Platinum is from South Africa, and this precious metal is about 15-20 times scarcer than gold. If you decide to trade Platinum this month, the current price level still represents a good value for what you pay, and the trend of this precious metal remains bullish.Technical analysis: Platinum has the potential to surge even more
Platinum has found strong support above the $1000 level and this precious metal has the potential to surge even more in the current market environment. Demand could expand even further, and investors in this precious metal stand to gain a lot more for taking a comparatively smaller risk.Data source: tradingview.com
The current resistance levels are $1100 and $1200; $ 900 and $800 represent the current support levels. If the price jumps above $1100, it would be a signal to buy Platinum, and we have the open way to $1150.
Platinum still has a good risk/reward ratio, and rising above $1200 supports the bullish trend. On the other side, if the price falls below $900, it would be a firm “sell” signal, and we have the open way to $800.Summary
Platinum price has advanced above $1000 in the first week of December, supported by the news that the FDA is likely to approve the coronavirus vaccine. News that the U.K. will start to distribute a coronavirus vaccine next week also adds further support to this precious metal. According to the rules of technical analysis, the current trend of this precious metal remains bullish. If the price jumps above $1100, the next price target could be around $1150 or even $1200.
The post Platinum price hit highest levels since September 2016 on improving risk sentiment appeared first on Invezz.