At New York Mercantile Exchange, platinum futures have started climbing up after hitting lows at $1530 levels in the beginning of this month but strong upward movement is unlikely as platinum’s demand not only comes from jewellery but from industrial sector as well.
On the positive side, decline in South African production on labour tensions augurs well for the precious metal but eurozone concerns, US cliff issues cloud automobile industry demand and hence the demand for auto catalysts.
“On technical charts, platinum January contract is approaching the 200-day moving average of $1576 but MACD is still in negative territory while an RSI of 46 does not suggest any bullish moves as yet,” according to Sreekumar Raghavan, Chief Commodity Strategist at Commodity Online.
Near-term support for Platinum futures is seen at $1540, $1530, resistance is seen at $1600, $1620 levels, he added.
Meanwhile, relatively lower prices for Platinum compared to gold has prompted consumers to increase purchase of platinum jewellery this festive season, traders said.
According to US CFTC data for week ended November 6,managed money funds reduced their bullish bets on platinum by 4046 contracts as against a shortfall of 453 in short positions.
Near-term support for Platinum futures is seen at $1540, $1530, resistance is seen at $1600, $1620 levels, he added.
By Sreekumar Raghavan