Can Platinum catch up to Gold? Platinum (XPT/USD) Price Forecast

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.

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Platinum is initiating a strong impulsive move higher since last Friday, coinciding with the drop in the Dollar and the dovish repricing for the December 10 Meeting.

Like other metals, Platinum demand is strongly tied to interest rates (Inverse correlation)

A $600 move higher from April to July shaped quite a precedent in Platinum, which had been left on the sidelines throughout the past year.

Interest for Platinum dropped again as both Silver and Gold were racing to new all-time highs after August. In such commodity cycles, it is common to see lagging products to the Market which can offer decent trading opportunities.

Now, if Platinum manages to reach and break its 2025 record at $1,747, odds of a measured move all the way to $2,100 forms a decent probability of happening.

In the meanwhile, keep an eye on the daily highs, Bull channel and yearly highs to spot how the metal reacts to its technical resistances.

Platinum is attempting a breakout above the $1,620 to $1,650 Mini-Resistance but is facing overbought RSI conditions which point to some consolidation.

Let's see what it needs to get started again on the 1H Timeframe just below.

Platinum Technical Levels to keep on your charts:

Resistance levels

• $1,620 to $1,650 Mini-Resistance (breaking)
• 2013 and Current year highs $1,700 to $1,750 ($1,747 2025 Highs)
• 2011 Highs between $1,860 to $1,915
• $2,100 potential Measured Move target
• $2,299 2008 All-time highs

Support levels

• Hourly support at the 50-Day MA $1,575
• $1,500 Higher timeframe Pivot and Channel Lows, acting as support
• $1,250 to $1,300 Major 2025 Support
• $1,000 2010 to 2020 Support

Platinum has rallied in a tight-bull channel throughout this week, leading to the current session's breakout attempt.

With many traders still absent due to Thanksgiving week, low volumes will be needed to keep propulsing the price action higher.

Now forming an hourly bearish divergence, odds of a retracement are increasing again.

• Keep an eye on the rising hourly trendline for potential pullback entries,
• Breaking the trendline however could signify a larger pullback to the 200-Hour Moving Average at $1,547.
• Breaking and closing above the session highs maintains high breakout odds

Next week should be key for the precious metal.

Safe Trades!

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