Platinum is one of the most important industrial metals in the world. It is used in large machines and vehicles as a catalytic converter. It is found in most combustion engine vehicles. Platinum is also seen by some investors as being a precious metal though it does not come close to gold. In countries like India, some jewellery manufacturers are starting to promote platinum-made jewelleries.
Because of platinum’s qualities and usage, it is known as a good indicator of economic growth. As the global economy improves, so does its demand. This means that its price tends to rise as the economy improves. However, there is another factor when it comes to platinum. When its price rises, manufacturers can substitute it to the cheaper palladium, which has similar characteristics.
This year, as the global economy has taken a beating because of the ongoing trade conflict with the world. Traders believe that the demand of platinum will be hampered. Today, platinum’s price has fallen by almost 10% on a YTD basis. It is trading at $828 and is close to the YTD low of $815. The price is between the lower and middle Bollinger Bands. Its RSI is at 42, while the price is below the 100-day moving average. As the ongoing trade crisis continues, we can expect the price to continue moving lower to potentially test the $800 level.
Platinum is one of the most important industrial metals in the world. It is used in large machines and vehicles as a catalytic converter. It is found in most combustion engine vehicles. Platinum is also seen by some investors as being a precious metal though it does not come close to gold. In countries like India, some jewellery manufacturers are starting to promote platinum-made jewelleries.
Because of platinum’s qualities and usage, it is known as a good indicator of economic growth. As the global economy improves, so does its demand. This means that its price tends to rise as the economy improves. However, there is another factor when it comes to platinum. When its price rises, manufacturers can substitute it to the cheaper palladium, which has similar characteristics.
This year, as the global economy has taken a beating because of the ongoing trade conflict with the world. Traders believe that the demand of platinum will be hampered. Today, platinum’s price has fallen by almost 10% on a YTD basis. It is trading at $828 and is close to the YTD low of $815. The price is between the lower and middle Bollinger Bands. Its RSI is at 42, while the price is below the 100-day moving average. As the ongoing trade crisis continues, we can expect the price to continue moving lower to potentially test the $800 level.
The post Why $800 is the Next Level to Watch for Platinum appeared first on Forex.Info.
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