This week’s news will be the main platinum price drivers.
The U.S. Core Personal Consumption Expenditures (PCE) Price Index data will be released on Friday. The index is expected to decline to 0.3% month-on-month and to 4.5% year-on-year versus 0.3% and 4.6% in February. The U.S. Fed uses the PCE data as one of the key indicators of inflation.
The U.S. Chicago Purchasing Managers Index (PMI) data also will be presented on Friday. The index is projected to decrease slightly from 43.8 to 43.5 for the month. However, S&P Global preliminary estimates point to a possible risk of growing activity.
The U.S. GDP data for the first quarter (Q1) of 2023 will be available on Thursday. The consensus forecast is now 2% versus 2.6% in Q4.
In addition, the Q1 Employment Cost Index data is also expected on the same day. According to forecasts, it will be 1.1% compared to 1% in Q4.
High inflation increases risks of interest rate hikes by the Fed. In case of monetary policy tightening, precious metals markets will be under pressure.
The expected decline in the core PCE and PME indices could support platinum prices. Weaker figures show possible lower inflation and slower economic growth. Most volatility could come from the U.S. GDP data release, and the market has already taken into account potential monetary policy tightening.
The platinum price demonstrates a bullish trend on the H4 timeframe.
The price of the white metal is in a well-defined uptrend on the H1 timeframe. The moving curves of the Stochastic Oscillator (standard values) came out of the oversold area, indicating a short-term change in the trend towards the "north". At the same time, the price has pulled back from the uptrend support, which gives a buy signal at the current price.
Signal:
The short-term outlook for platinum suggests buying.
The target is at the level of 1,175.0.
Part of the profit should be taken near the level of 1,145.0.
The Stop-loss is at the level of 1,090.0.
Bullish trend is of short-term nature, so it is worth selecting the trading volume of not more than 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.
