Not the most commonly traded precious metal, Platinum is starting to gather significant attention from market participants as it begins to outpace its peers.
Even more scarce than gold, platinum boasts crucial industrial utility, particularly in the automotive industry for catalytic converters, as well as in the industrial, medical, and electronics sectors.
Compared to the yellow metal, platinum doesn’t hold the same central bank demand as a store of value.
Nevertheless, its industrial use, rarity, and historical correlation to gold make it an intriguing asset to trade, especially amidst the yearly frenzy around precious metals.
The Gold-to-Platinum ratio, which has historically hovered between 1.0 and 1.5, has widened dramatically throughout the 2010s and currently stands elevated at roughly 2.50 (with Gold around $4,190 and Platinum near $1,640).
While Gold is now back around$4,200 in another strong move higher, Platinum has actively outperformed other metals in the past week, rising close to 2% on the day.
This strength is underpinned by persistent supply deficits projected to last through 2029 and transformative market developments like China’s launch of new platinum futures contracts, boosting demand even further.
Let’s dive into a technical analysis for this uncommon trading metal to spot what opportunities XPT/USD (Platinum) has opportunities to offer.