Platinum to continue strong in 2021 | 31 Jan 2021


Platinum Price Forecast relative to Long Term Monthly - Medium Term Weekly - Short Term Daily - and Hourly (not shown) data.

PLATINUM FORECAST

(Previous week in brackets)

Platinum USD Monthly Weekly Daily
1074 (1101)
PT Trend ↑ (↑) ↓ (↓) ↓ (↓)
Pt % Risk
Weight
84 (86) 80 (81) 42 (70)
PM Distribution
Total allocation 55% (50%)
Pt:30% Ag:40% Au:30%

Platinum / USD live price



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Platinum comment

January 2021 close:  Platinum/USD  only just started its long term uptrend in March 2020 and we have yet to get early signals for that trend to change direction.  The short term Daily looks to be in the process of diverging against the Weekly and Monthly.  The next upturn should confirm this. No Change to our roughly 30% allocation within the total PM space.
22 January 2021 close:  Early exit from markets that appear to indicate high/higher risk weight is not uncommon. Our experience learns that more often than not one can easily miss 50% of the move. For trading it could validate an earlier 25% exit. For investment and in this case it is better to  stay put. We are in a primary uptrend where we should await bearish divergence ,Risk weight to Price, in the longer term time scales. That hasn't happened yet, so we wait. Daily risk is pointing down but Hourly risk weight is still pushing upward across our tools. No Change.

GOLD/PLATINUM Ratio Price Risk Charts & Analysis

(Previous week in brackets)

Gold Platinum ratio Monthly Weekly Daily
172 (168)
Trend ↓ (↓) ↑ (↓) ↑ (↑)
% Risk
Weight
25 (22) 10 (6) 76 (22)
PM Distribution
Total allocation 55% (50%)
Pt:30% Ag:40% Au:30%

Gold/Platinum Ratio Charts

Daily Ratio Jan close

Gold/Platinum closed the month of January just above 1.70 whilst the short term uptrend looks quite sharp without much of a price change and may lead to early bearish divergence upon turning down. A push higher of the ratio is still possible this coming week.

Weekly Ratio Jan close

A small correction still on the cards as Weekly in strong oversold range. The Daily runaway without much price change confirms our medium term hold for further Platinum price advance versus Gold.

 

Monthly Ratio 31 Jan

Due to a higher close the Full month risk weight ended slightly higher and still in a firm downtrend at 24.  This confirms our longer term hold in favor of Platinum. We started our Platinum allocation at around 2.15 seeking to hold with an objective closer to 1:1. It cold take many, up to 18, months before we reach this level.

Qrtly Ratio 31 Jan

Interim Quarterly risk weight finished January slightly higher than last week. at 43. The current downtrend is strong and we can expect a risk weight of around 20 before a more serious interim correction can be expected. This may be several quarters into the future. The Platinum hold is well portfolio balanced and low risk with Gold and Silver.


Daily Ratio 22 Jan

The possible corrective reaction we expected last week did not materialize with the Gold Platinum ratio consolidating in the 1.65-170 range. The short term picture still favors further upward correction and this could even last a bit longer as weekly is also pushing up. We prefer to see a deeper risk weight dive in the Monthly and Quarterly time scales before considering a short term exit.

Weekly Ratio 22 Jan

Last week's observation for the Gold Platinum ratio to consolidate in a higher price range (170+) still applies. As we are in a primary AU/PT downtrend we can expect bullish divergence to develop with a wider calendar spread of 6 to 9 months. Price objectives are 1.60, 1.20 and 1.00. Our allocation spread therefore allows for some Platinum weakness, which can lead to a larger allocation to Platinum if strong bearish divergence between short and medium term timescales is building.

Monthly Ratio 22 Jan

Interim Monthly risk weight fell just 2 points to 22 this week and is expected to reach a deeper sub 10 level as price reaches our expected targets. This could take many months with some correction along the way.

Qrtly Ratio 22 Jan

Quarterly risk weight declined just 1.5 risk points to 41 and is also expected to at reach a sub 15 level at a quarter end print and sub 10 as an interim print. We should normally be able to act on strong shorter term oversold signals to maximise the result from the present Platinum allocation.



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Posted in A - All Financial Blogs | 2021 Forecast, PLATINUM FORECAST 2021 | EYEFORGOLD.

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