The Platinum price has broken two key support levels and looks likely to head lower. Supply is also set to increase as South African miners return to work as Covid-19 restrictions ease. Platinum (XPT/USD) has benefited from favourable market conditions this year. The price has been boosted by a weaker […]
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Platinum prices have been in an uptrend since 2000, and an increase in demand for diesel cars drove platinum prices in 2008to $2,300/oz as the rare metal is used for catalysts in diesel cars. In 2017 the need for platinum fell after a drop in demand for diesel vehicles over speculation that governments will increase taxes to owners of diesel cars. In August 2010, the platinum price dropped to $760/oz, just to start a rebound that is intact until today as the platinum price was trading $970/z at the time of writing.
What is Platinum?
Platinum is a precious metal that is even more rare in nature than gold. Platinum is used both for jewellery while in the last decade it used in many industrial applications and especially in the auto industry for catalysts in diesel cars.
There are two countries that produce around 90% of the platinum supply: Russia and South Africa. The fact that platinum production requires a lot of energy and capital to acquire a pure ounce of platinum, it is no wonder why supply is one of the main factors determining the platinum price. Because platinum produced by two countries creates opportunities for monopoly-like behavior, that can influence the platinum price.
Platinum price rally is showing no signs of slowing down. The embattled metal rose to the highest level in more than 6 years a few days after it experienced a bullish break-out. Platinum has risen for the past 5 consecutive days and is trading at 1,265. At the same time, […]