Alex Bobrov
⬤ Platinum is showing signs of life after taking a beating with a 34% drop from peak to bottom. The selloff wiped out about half of the gains platinum made from its April 2024 low. But the weekly chart suggests the worst might be over—selling has dried up and buyers are slowly stepping back in.
⬤ What's making platinum interesting again is how cheap it's gotten compared to gold. The platinum-to-gold ratio crashed to a three-year low around 1.74, meaning platinum was historically undervalued. Now that ratio has bounced back to roughly 2.20, which tends to bring bargain hunters back into the market when precious metals sentiment improves.
⬤ The technical picture shows platinum trying to build a floor after the correction. The 50% retracement level lines up with key Fibonacci zones on the weekly chart, which traders watch closely. The first resistance to watch sits near $2,295, with a second hurdle around $2,415—both levels played important roles during the previous rally.
⬤ This matters because platinum moves more violently than gold or silver due to thinner trading volumes. Now that it's finding support and looking relatively cheap again, how prices react at the $2,295–$2,415 zone will tell us whether this recovery has legs or if platinum stays stuck in range-bound trading for a while.
Alex Bobrov
