Platinum price forecast | Platinum: the stronger precious metal | 27 November
Platinum Price Forecast relative to Long Term Monthly (LT-M) - Medium Term Weekly (MT-W) - Short Term Daily (ST-D) - and Hourly (not shown) data.
PLATINUM FORECAST
(Previous week in brackets)
| Platinum USD | LT-M | MT-W | ST-D | |||
|---|---|---|---|---|---|---|
| 961 (943) | ||||||
| PT Trend | ↑ (↓) | ↑ (↑) | ↑ (↓) | |||
| Pt % Risk Weight |
71 (70) | 54 (42) | 93 (89) | |||
| PM Distribution Total allocation 55% (50%) |
Pt:30% | Ag:40% | Au:30% | |||
Platinum / USD live price
Platinum comment
27 November:: We moved our Platinum weekly comment to the home page last week as it has our main focus in the PM space at this very moment. Platinum hasn't peaked yet technically and the relative performance to Gold and Silver was some 7%. Platinum/USD ended the week stronger (961) than the previous week (943) whilst gold dropped nearly $100. We increased our platinum allocation by a full 5% of total portfolio expecting platinum to reach that one to one equilibrium in due course. It does look a little toppish but the experience with contrarian price behavior like this supports our longer term outlook. The additional 5% allocation means the portfolio distribution has now put Platinum on a par with Gold at 30% each with silver at 40% of total PM.
20 November:: Platinum broke above its 2 months 850-900 trading range closing at 943.00 on an hourly bullish level at the end of trading on Friday. If the daily close holds above 943.00 in coming days an objective of 1137 comes in sight which is the upper band of the channel that started in March 2020. The weekly time frame and risk weight looks particularly strong at this moment. The better relative performance of Platinum compared with Gold and Silver now means that a few daily closes nearer 1000 is enough to upgrade the Platinum portfolio allocation if not done already and not wait for the 1037 closing break. Non-US tax retail investors can easily trade Platinum at more competitive rates using the regulated Bitpanda echange. An additional investment in BEST tokens adds some interesting extra benefits. No Change to full allocation.
13 November:: Platinum has been trading in the 50 dollar 850-900 range since Sept 20 and looks to develop a stronger bottom after a 2 step correction from the August 1000 handle. For new investors, the current level is an entry point or a break above 1037. No Change.
GOLD/PLATINUM Ratio Price Risk Analysis
(Previous week in brackets)
27 November:: Check our freshly updated charts below.
| Gold Platinum ratio | LT-M | MT-W | ST-D | |||
|---|---|---|---|---|---|---|
| 185 (198) | ||||||
| Trend | ↓ (↓) | ↓ (↓) | ↑ (↑) | |||
| % Risk Weight |
50 (68) | 8 (17) | 1 (6) | |||
| PM Distribution Total allocation 55% (50%) |
Pt:30% | Ag:40% | Au:30% | |||
Gold / Platinum Ratio Charts
Daily Ratio as at 27/11/20
Daily Risk turned down again in serious oversold condition We could expect a pause in the down trend either caused by a correction of PT following Gold downward or Gold recovering from its recent weakness. It doesn't change our longer term outlook. The 7% drop in the Gold/Platinum Ratio last week indicates a genuine and technically deserved appetite for the metal
Weekly Ratio as at 27/11/20
Weekly risk is still strongly trending down nearing an intermediary oversold condition. The strong Long term (Qrtly and Mntly) Gold Platinum ratio downtrend is most likely to determine a continuation of that trend for several quarters
Monthly Ratio as at 27/11/20
Monthly risk weight has now established a very strong downtrend and is leading the overall trend even if we see a few short term and medium oversold pauses along this ride. Monthly is also supported by a strong major quarterly downtrend.
Qrtly Ratio as at 27/11/20
Quarterly risk weight is strongly down with some way to go. This quarterly indicates that major shift we have been waiting for and should drive the Gold Platinum ratio back to a more normal 1 to 1 equilibrium, not being suprised if it overtakes gold by a serious margin even our exclusive increase into Platinum allocation appears a low risk investment from a long term technical perspective
20 November comment:
Daily Risk turned up from down and could pause the relative advance of Platinum for a few days as it moves into a more neutral risk position. The Au/Pt ratio closed below 2.00 for the first time in 5 months. The Gold price was unchanged for the week whilst Platinum improved by 6%. Our preferred scenario is for Daily risk to reverse in the oppositie direction of weekly and then resume its downward pressure. As Platinum is now rising from a very deep level relative to gold anything is possible
Weekly risk is strongly trending down still nearing an intermediary oversold condition and because the Gold Platinum ratio now appears to have entered a fresh recovery towards equilibrium, a first objective risk in the intermediary ration downtrend would be a bullish divergence in this weekly time frame. Expect this to happen earliest at the beginning of 2021
Monthly risk weight now clearly shows a beginning downtrend that started from strong bearish risk to price divergence developing this year
Quarterly risk is also in a strong dowtrend with bearish risk weight (95 vs 75) to higher price (150 vs 220) divergence. This pattern typically seeks for an objective of a ration at 1.50. Our primary objective is for Platinum to reach par versus gold. Platinum therefore has the most investment potential in the precious metals wealth preservation space