Is Platinum Forming a Bottom as Industrial Demand Rebounds and Supply Tightens?
Platinum is stabilizing after a sharp drop as improving industrial demand and tight supply support prices, but the outlook remains sensitive to oil movements and geopolitical risks that will determine whether the recovery can sustain.
Platinum (XPL) prices fell significantly in March following the U.S.-Iran crisis, which boosted inflation expectations. But the recent oil correction has led to a recovery in the precious metals. In my opinion, this change in the macro environment, along with strengthening industrial indicators and continued supply shortages, will likely lead to a bottoming process for platinum. This article presents the macro backdrop, industrial developments, structural changes in demand and technical levels that will be crucial to determine the next move in platinum.