There are two main reasons behind the recent decline in platinum prices. One reason is weaker industrial demand due to a stagnating global economy. The other reason is the recent downtrend in the price of gold which is pulling down the entire precious metals complex.
However, there are a couple of reasons why the price of platinum may be close to a bottom. For example, above ground platinum stocks are expected to fall by 17% on a year to year basis in 2015. Also,
there is a possibility of a short covering rally. This is because gross
speculative short positions in platinum recently hit at an all-time
high, suggesting negative sentiment towards platinum is overdone
Only technical analysis will help spot the bottom……so let’s go directly to the charts.
Daily Platinum Futures
Quarterly Platinum Futures
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