Platinum: Exuberant Response and Record Highs on Speculation
Platinum via its cash price at the time of this writing is near 1,670.00 USD, this after an early morning high took the precious metal within 1,685.00.
Platinum is trading within record prices today in response to the speculative fury being seen across the metals commodities sector. Platinum is near the 1,670.00 level as of this writing and touched an apex of 1,685.00 earlier this morning. Platinum is running fast and day traders tempted to keep pace better have serious risk management in use. The highs attained in the precious metal are noteworthy and are correlating to record values being seen in gold. Dangerous fast conditions prevail.
Platinum has always been a highly desirable metal for use in jewelry and industry. However, platinum is not viewed by long-term investors in the same manner that gold holds. While platinum is certainly an important commodity, gold is seen as a better safe haven asset. It would be difficult to call platinum a second tier metal compared to gold’s tier one status, but it might not be incorrect. However, platinum certainly has its followers and the metal is performing well.
Jump Higher and Apex Levels in Platinum
On the 25th of September platinum began to sustain the 1,500.00 price level and build momentum upwards. At the end of July and beginning of August platinum was near the 1,300.00 ratio. At this time last year platinum was around 1,000.00 per ounce. Platinum’s ability to gain over 65% in the past year is quite an accomplishment. Fast market conditions have correlated to gold in many respects, but the dynamics are not exactly the same. The price of platinum as a reaction to the price of gold should be taken into consideration.
Fundamental traders of platinum may not like the comparison to the value of gold. However, via a speculative looking glass it is certain that momentum in platinum is feeding off of the frenzy being seen in gold. Day traders tempted to pursue platinum because it is ‘cheaper’ than gold need to understand that the speed of trading in the commodity, while perhaps not as expensive still has the capability of moving fast and being costly. This morning’s record high in platinum and the subsequent reversal are warning signs.
The 1,700.00 Level as a Target
Just like all assets, platinum certainly has targeted values that large players and small traders are looking at numerically as psychologically important levels.
- This morning’s leg up in platinum started to get push back well before the 1,700.00 was seen, but the value may remain a definite target by traders.
- However, day traders likely cannot be too ambitious and must be willing to look for quick hitting results.
- Betting on downside in platinum can be done, but the trend upwards in the precious metal would be difficult to argue against too much for near-term considerations.
- Looking for higher prices near perceived support ratios or after downside reversals have developed based on profit taking having been seen technically may be intriguing in the near-term for speculative wagers.
Platinum Short-Term Outlook:
Current Resistance: 1,677.00
Current Support: 1,661.00
High Target: 1,701.00
Low Target: 1,650.00