Platinum prices decline for the third week in a row

30 May 2023 169
Platinum prices decline for the third week in a row

The price of platinum is strongly depends on the news background this week.


Market participants expect another rate hike in June, and the agreement on the debt ceiling is ready to go to Congress for a vote. On the basis of these events, precious metals are trading at three-week lows.

On Sunday, U.S. President Joe Biden and House Speaker Kevin McCarthy reached an agreement to pause the current national debt ceiling.


Several extreme right Republican regulators said on Monday that they would oppose an agreement to raise the U.S. debt ceiling by $31.4 trillion.


According to the head of the ANZ's world economy department, Brian Martin, the question of the national debt limit is not resolved until Congress will approve the agreement. If a deal is signed, the Federal Reserve System (Fed) will have to keep raising rates.


The head of metals strategy at MKS PAMP, Nicky Shiels, noted that raising the national debt ceiling will not solve the problem in the long term.


According to Alasdair McLeod, the head of Goldmoney research, regardless of the Fed's decision at the next meeting in June, credit will contract. The conditions for business will be tightened. A slowdown in the country's economic growth will lead to a decline in sales, and companies will have to borrow money.


Meanwhile, the regulator's decision at the coming Fed meeting will have an impact on the price of platinum. Tightening of the monetary policy is likely to cause a fall in the precious metal prices.


On the daily timeframe, the platinum price shows a reversal after going out of an uptrend.


On the H1 timeframe, the price is in the formation of the third descending wave. Breakout of the first wave top at 1019.60 will strengthen the movement of price to selling.


Also, the graphical analysis confirms the downtrend. The flag pattern on the hourly timeframe has a pole with a slope downward. A price move out of flag support near the level of 1025.00 would create a move toward the flagpole.



Short-term prospects for platinum are to sell

The target is at the level of 995.0.

Part of the profit should be fixed near the level of 1019.6.

The stop-loss is at the level of 1050.0.

"Bearish" 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.

New Popular
Commenting rules