Platinum price is hovering above the crucial support level of $1,950 after rising above it earlier this week. The easing of crude oil prices below the triple-digit zone has offered some relief to precious and industrial metals. Nonetheless, the bulls lack enough momentum to secure the support zone as investors weigh the fragile de-escalation hopes. In the near term, platinum price will likely remain within a volatile range as bearish pressure persists.
Platinum price seeks stability above crucial support zone
In recent sessions, a surge in crude oil prices has weighed on platinum prices, as well as other precious and industrial metals. However, Brent oil has plunged below the psychologically crucial zone of $100 a barrel after the US peace proposal to Iran.
The easing of oil prices has offered some support to platinum and other precious metals. On Wednesday, platinum price momentarily hit $2,000 before pulling back to find support around the crucial zone of $1,950. Similarly, gold rose by 1.88% to $4,553 an ounce while silver was up 1.92% at $72.64.
Even with the recorded gains, heightened inflation concerns and the subsequent volatility continue to weigh on platinum price. This explains the instability around the crucial support level of $1,950. As headlines on the US-Iran war continue to shape the broader market sentiment, the bulls are tasked with strengthening and sustaining the momentum needed to bolster the metal to $2,000 and beyond.
In the immediate term, the fragile de-escalation hopes may hold platinum price in a volatile range. Nonetheless, the bullish long-term demand outlook will likely offer some support to the asset.
Platinum price technical analysis
Platinum price chart | Source: TradingView
The Platinum price is back above the support level of $1,950 after plunging below it late last week. The return of crude oil price back to the triple-digit zone on Tuesday held it below that level, which had been steady for about three months. However, Wednesday’s Brent oil losses have boosted the metal.
Earlier in the day, the benchmark for global oil prices declined to a two-week low at $93.45 before rebounding slightly to trade at $95.50 as at the time of writing. As a result, platinum price has rebounded past $1,950. Indeed, it hit the psychologically crucial zone of $2,000 earlier on Wednesday but lacked enough momentum to sustain the move. At the time of press, it was at $1,971.
A look at its daily chart indicates that platinum price remains under pressure. To start with, the short-term 25-day EMA and medium-term 50-day MA formed a bearish death cross pattern. This happens when the short-term MA crosses the medium or long-term MA to the downside.
As investors remain keen on the geopolitical tensions in the Middle East, $1950 is still a crucial level to watch. The bulls will need to prove stability above that level in order to gather enough momentum that could yield a rebound past $2,000.
Before then, it may hover within a tight range of between $1,880 and $1,991. Below that range, Tuesday’s intraday low of $1,843 may offer near-term support. On the flip side, a rebound past the current trading range may face resistance at $2,032 as the asset remains below the short-term MA.
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