Price action in the platinum market in US dollar terms has rarely been so trendless and currently at the $955 level. This phenomenon is reflected in the weekly Bollinger Bandwidth which is currently displaying a 7 year low.
The weekly gold to platinum ratio is marking an all time high of 3.05, a level which shows a dramatic shift in sentiment compared to the 2008 level of 0.5. The 14 week relative strength index is now into overbought territory, while the weekly choppiness index is at 25, an area which suggests that trend exhaustion is nearby.
Supply and demand outlook reported by the World Platinum Investment Council remains utterly contradictory to the technical reality which can be seen by the following statistics published recently:
Should the Gold to Platinum ratio return to 2008 levels, one can assume that, based on the current gold price of $2915, the Platinum price could approach the $5830 area.
Our opinions are not a recommendation to buy or sell a security. Your decision whether or not to open a transaction should be based on your own due diligence and not on any representation we make to you.
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