Platinum price on the rise: Investors are hoping for a major trend reversal!

Platinum price on the rise: Investors are hoping for a major trend reversal!

The price of platinum has experienced a noticeable increase in recent weeks and is currently at $972. This represents a daily increase of 0.42% and a weekly increase of 2.7%. This is supported, among other things, by continued demand from the automotive industry, which ensures stability. In addition, substitution effects compared to palladium could make platinum more attractive to investors, as propaganda bubbles in the industry promote the use of platinum as a cost-effective alternative to palladium in catalysts. These developments could lead to platinum taking a more robust market position as demand grows despite global uncertainties. In addition, platinum is increasingly being viewed as a strategic substitute, which is important in times of geopolitical tensions. Current geopolitical tensions and new US auto tariffs are also impacting the platinum market.

Technical analysis shows that the price of platinum is in an uptrend. The price is above the GD-10, indicating positive market sentiment. The next resistance area is at $977 while support can be found at $912. Interestingly reported Finance.net, that the trend-following MACD provides a new entry signal and the relative strength (Levy) indicates the completion of a nearly four-year bottom formation. The long-term bearish trend that has existed since 2008 was broken at $938.59. This signaling is of interest to investors as the current bottom formation has clearly taken shape since 2021.

Trend reversal in the platinum market

The hope for a greater bottoming out over the last ten years is becoming clearer. A move above $1,100 could finally complete the lower reversal, with the potential from a successful reversal estimated to be close to $300. These positive technical indicators make platinum an interesting investment, especially for investors who want to protect themselves against market uncertainties. It is recommended to note the 38-month line at $960.55 as a hedge.

Recent developments show that despite existing challenges, such as structural pressure on palladium, platinum prices could continue to rise. The industry is trying to create a more stable base through diversification and cost efficiency. In addition, the importance of sustainable supply chains is becoming increasingly relevant, which could potentially further strengthen platinum. All of this contributes to an overall positive sentiment for the precious metal, even if it appears more reserved compared to gold, which has reached new record highs.