Platinum prices continue to form an uptrend.
According to the U.S. Treasury Secretary, despite the turbulence in the banking sector last month, lower inflation with a strong labor market is possible, and America is moving toward it.
The collapse of Silicon Valley Bank and Signature Bank caused a crisis in the U.S. banking sector, creating concerns about the negative impact on the economy.
The Treasury, along with the Federal Reserve System and the Federal Deposit Insurance Corporation, have taken measures to prevent banking problems from growing.
In addition to the collapse of banks and tensions in the labor market, there are other factors that have influenced the growth of inflation in the U.S., said Janet Yellen. Thus, disruptions in the supply chain caused by the pandemic have slowed down the development of critical economic sectors, particularly the automobile industry.
In Yellen's view, supply chains, as well as housing prices in America, are stabilizing at the moment.
U.S. economic data published this week showed a slowdown in inflation and a decline in consumer spending.
On the one hand, high inflation in the country, far from the goal of 2%, may encourage the Fed to continue tightening monetary policy. On the other hand, the banking crisis and the upcoming recession are factors
encouraging monetary policy easing.
Precious metals are becoming more popular in periods of instability. And the expected softening of the U.S. Federal Reserve policy has a positive effect on their prices.
Also, the pricing of silver may be affected by news from Zimbabwe, as it is one of the largest platinum producers in the world. Todal Mining's platinum project license revocation could potentially affect the price of platinum. If the project will be withdrawn due to the lack of progress and realization, it may lead to a decrease of platinum supply in the market and, consequently, to an increase in the price of platinum.
Platinum price is technically bouncing back from the bullish trendlines on the H4 timeframe.
On the H1 timeframe the price is in the formation of the third ascending wave. The main impulse of the third wave will show after breaking through the top of the first wave near the level of 1070.0.
Short-term prospects for platinum - buying.
The target is at the level of 1150.0.
Part of the profit should be fixed near the level of 1100.0.
The stop-loss is at the level of 1035.0.
Bullish trend has a short-term character, so the volume of trade should not exceed 2% of your balance.
This content is for informational purposes only and is not intended to be investing advice.