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
Platinum comment
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
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.
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.
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.
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.
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.
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.
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.