Platinum (XPL) prices gained over 2.5% on Wednesday after marking a low at $1,388 as the US dollar index dropped after the US midterm election. Platinum may continue to rally if the US dollar index breaks below the key support level of 100.50. But the risk of high interest rates keeps the rallies in metals limited. The high cost of borrowing and concerns about demand may limit rebound in the platinum market.
Platinum is used in the automobile industry. If car loans become expensive, it may slow vehicle sales and reduce demand for platinum which is used in catalytic converters. The market is now waiting for ADP report and ISM services survey on Wednesday to find clues about the next path for interest rates.
The biggest event for the week might be the US jobs data on Friday. I think that softer hiring and easing price pressure may support platinum prices and extend the recovery. But if the data is strong, it can increase expectations for tight policy and increase pressure on platinum prices.
Platinum Price Forecast: $1,530 Resistance and $1,350 Support
Monthly Chart: Platinum Rebounds Near $1,350 Support
The monthly chart for platinum shows that the rebound in November developed from the low of $1,388, which is near the long term support of $1,350. The immediate resistance in platinum remains the $1,530 area. A confirmed break above $1,530 will likely open the way for further upside toward $1,700.
But a break below $1,350 will likely trigger further drop towards the $1,200 region. As long as prices remain above $1,200, the possibility of strong rally toward $1,700 is high. This is due to the formation of inverted head and shoulders pattern on the monthly chart.
Daily Chart: A $1,530 Breakout Could Open the Way to $1,700
The daily chart for platinum also shows that the recovery so far looks constructive. It faces strong resistance near the $1,530 region. This resistance is also confirmed by the low of July 1, 2026. A break above $1,530 will likely open the way for further upside towards the $1,700 region which is considered the resistance of the descending channel pattern.
This descending channel pattern stretches from the highs of March 2026. But if prices fail to hold the $1,388 level, they will likely continue to drop toward $1,350 and then $1,200.
4-Hour Chart: Platinum Needs to Clear $1,467 to Extend Recovery
The 4-hour chart for platinum shows that prices have been trading within the descending channel pattern since the highs of September. The recent rebound from $1,388 has missed the strong support at the $1,350 level. But the rebound so far is constructive as the price has breached the $1,450 region.
A break above $1,467 may push the price to $1,530. A break above $1,530 will likely push prices toward the resistance of descending channel pattern. The channel resistance lies between $1,550 and $1,580.
Platinum-to-Gold Ratio: Why Platinum May Keep Lagging Gold
Platinum prices have been underperforming gold prices as the platinum-to-gold ratio has remained in a negative trend since the highs of 2008. The chart below shows that this descending channel pattern has stretched from the highs of May 2008. Each time the ratio hits the resistance of this channel, it drops lower.
The latest record high in platinum was marked in January 2026 at $2,925, while gold prices also marked a high at the same time at the $5,600 level. When these metals marked the record highs, the ratio produced a high and formed a negative candle for January 2026.
This negative price action right at the resistance of descending channel suggests that the ratio may continue to drop towards the 0.30 level. This negative movement in the ratio suggests that platinum prices may underperform gold prices in the next few months.
Bottom Line
Platinum prices may continue to rally if the US dollar index continues to drop. The pressure in precious metals has been driven by the expectation of high interest rates. Therefore, the jobs data this week is important to monitor. The softer data may ease the expectations for tighter policy while the strong data may increase the expectations for high interest rates.
In my view, the platinum price must break above $1530 to open the way for a rally towards $1700. But the break below $1,350 may open the way for further downside to $1,200. The negative trend in the platinum to gold ratio suggests that platinum may continue to underperform gold.