We tipped platinum as the one Precious Metal To Buy In 2021, and our Platinum Price Forecast For 2021 was very bullish. After a strong run higher from 1020 USD to 1320 USD, it’s clear now that platinum needs more time before it can get bullish. Last Thursday was the start of a breakdown, and this implies a consolidation is ahead.
The platinum price chart shows how a 3 month uptrend was broken on Thursday.
This implies that platinum will have to move lower, next stabilize and only then gather energy to create bullish momentum.
Our best guess is that platinum needs another 2 months before getting bullish again. Between now and then, we better give this market the time it needs … as opposed to forcing a trade.
Platinum was looking to create good support last week, but it eventually failed on Thursday. Why? Because precious metals as a group are crushed. Gold got hit hard, on the one hand by bond yields and the other hand by the USD. There is no world in which yields and the USD can be strong without creating damage in precious metals.
Even platinum, which has the weakest correlation with the USD and with yields, got hit (rather hard). To us this, implies that platinum will need much more time before moving higher again to our 1500-1600 USD target.
