On the 28th May 2025, we addressed the potential for a sharp rise in volatility in the platinum market (see https://www.stoxxtip.com/technical_display.php?id=206 ). Since then platinum has jumped almost 200 dollars within the space of fifteen days and closed the week (6th June 2025) at $1169.
Although the overall picture is bullish, FOMO disease is slowly rearing its ugly head as can be observed with the 14 week relative strength index at over 70% and the distance of the current price from the 40 week moving average at 16%. The high in March 2022 of 1179 was followed by a sharp decline in September 2022 to the $829 level and there is no guarantee that a similar movement will not take place again.The weekly MACD-V level of 56 is close to similar extreme levels seen on a number of occasions since January 2023. The Fibonacci 23.6% retracement from the high based on the $1336 to $558 range traded since March 2020 comes in at $1152.
The Gold to Platinum ratio has fallen sharply to 2.83 from a recent high of 3.56 and is now below its 200 day moving average of 2.9370. It is not yet apparent if the bull market in platinum will continue with the same recent dynamic thrust, however the short term outlook appears over-extended.
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