Platinum Price Forecast – XPT/USD Slides As DXY Gains Momentum
Platinum (XPT/USD) price had a strong rebound in July 2023. The precious metal surged by more than 5% after a major pullback from its yearly peak. However, after a strong bounce, the price is once again facing headwinds from the recent strength in the US dollar.
On Tuesday, Gold & Platinum slid as the DXY index extended its gains. At press time, Platinum is trading at $943 after losing 0.57% during its London session. Gold and Silver are also showing a similar price action as both metals turned red today.
Why Is XPT/USD Sliding?
The prices of precious metals have been facing headwinds due to a strong rebound in the DXY index. The latest bounce in the dollar strength index comes after the index plunged to its fresh 52-week lows in July. Since then, the index has been up 2.64%, which shows that the bulls are gaining momentum.
Due to the bounce in the DXY index, Platinum price is currently trading almost 5% below its July highs. Another reason behind the recent pullback is the recent 25 bps rate hike by the US Fed. However, as the rate hike season reaches its final season, precious metals remain strong on the higher timeframe.
Platinum Price Needs To Reclaim $1,000
The following XPT/USD chart shows that Platinum has been trading within a particular range for the past two years. Since September 2021, most of the price action has occurred within the $910-$1,110 region. The bottom of this region is acting as a major demand zone. In July, the price retested the range lows, before having a very strong rebound.
The platinum price forecast will flip bullish once it breaks above the 200-day moving average. The key moving average currently lies at $997, which is very close to the key psychological level of $1,000. A break above this level could send the price to retest range highs at $1,110.
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