Platinum market poised for more price upside
Platinum market poised for more price upside
By Jim Wyckoff
Published:
Updated:
(Kitco News) - Nearby platinum futures in July hit an 11-year high of $1,491.20 an ounce. Prices have since backed off and seen some normal chart cosolidation. Still, the technical posture for platinum remains bullish. A move above the July high would open the door for much more upside price potential in the coming weeks and/or months. The all-time high in platinum futures is $2,308.80, scored in March of 2008.
While the charts are bullish for platinum, there are also bullish fundamentals at work, including:
Gold prices at record highs, silver at 14-year highs this week. Comex gold futures prices on Tuesday scored an all-time record high of $3,715.20 an ounce, basis December futures. December Comex silver on Monday stretched to a 14-year high of $42.355 an ounce. Those two metals will likely continue to see safe-haven bidding amid geopolitcal events that are presently simmering. Platinum and palladium would also be boosted if gold and silver prices continue to trend up.
Major countries are stockpiling minerals, including metals. China appears on a mission to be the holder of the most strategic minerals on earth. China’s dominance over mining and processing, its export restrictions and active stockpiling (hoarding) of valuable “rare-earth” minerals has caught the attention of other major industrialized countries which are now doing the same. The trend of stockpiling strategic minerals (which includes precious metals) among major industrialized countries is relatively new from a historical perspective. It’s likely this trend will continue for many years to come. That’s likely a bullish tonic for the precious metals markets, includign platinum and palladium, for years to come.
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