Platinum futures benefited in last week's recovery of the precious metals complex and are once again closing in on the $1,900 per ounce level. The steeply rising trend of the retracement underscores the strength of the market, with a possible breakout of the Rising Channel chart pattern in store for the near term.
Friday's price action moved the platinum price to the breakout level needed to exit the channel and accelerate the angle of the ascent from the current trend. A move higher in prices from this level without a pullback towards channel support will confirm the breakout and generate a forecast target, which is likely to move in tandem with gold towards the $2,000 per ounce level. A failure to overtake Friday's high would suggest a short term pullback however, and a possible retest of the trend line at $1,850 per ounce.
The current price of platinum is nearly equal to the price of gold. This has historically been a strong value area for platinum, as the price is almost always at a premium to gold, suggesting that a continuation of the precious metals rally will eventually send platinum much higher on a relative basis.
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