Platinum and Palladium Price Forecast: Oil Above $100 Raises Breakdown Risks
Platinum and palladium face renewed selling pressure as oil rises above $100 and Fed hike bets bring the key $1,700 and $1,200 support levels into focus.
Platinum (XPL) and palladium (XPD) started the week under pressure as oil prices broke above $100 and markets braced for a rate hike by the Federal Reserve. Higher Treasury yields and a stronger U.S. dollar reduced demand for precious metals. Rising energy costs also increased concerns about inflation, production expenses and vehicle sales. In my view, platinum has the strong outlook in the long term, but both markets need lower oil prices and softer rate expectations to begin a sustainable recovery. This article presents the key factors affecting platinum and palladium prices and examines the key technical levels to watch.