Platinum - neglected with bullish potential

by Tim Straiton
Saturday 1st January 2022

Platinum is currently trading at $962.50 which is 10.82% below its falling 200 day moving average of 1067.89. The short-term technical situation paints a rather negative picture, however the long term monthly chart reveals a break out of the falling trend resistance line which took place in December 2020 at the 1030 level.

The Gold/Platinum ratio is currently at 1.8995 which is almost half the price of gold, although in 2008 the ratio was 0.45 or double the price of gold. We regard the current ratio as unsustainable and foresee a return to parity during 2022. This would suggest a price target within the $1750 -$2000 range.

The price target for the fourth quarter of 2022 from the Commerzbank is $1500 and from Morgan Stanley is $1275.

Margery Ryan, principal analyst at Johnson Matthey, explained:

“Net-zero commitments made by the UK, the European Union, China and most recently the Biden administration in the USA, will require much greater use of hydrogen as an alternative to fossil fuels, and platinum group metals will play an important role in the hydrogen economy.”


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