Since late spring, platinum prices have seen significant downward movements. Crushed by bearish price action, prices have since declined by as much as 14%. At $950 / oz, platinum breached prior lows that had previously acted as support zones. However, precious metals prices for platinum recently bounced by 10% from the most recent low, shooting it back of the $950 threshold.
This recent price action helped form a possible reversal pattern to the upside. Indeed, prices continue to form a possible “W” pattern, which typically indicates trends may go up during a breakout. Until that happens, traders continue to see the current volatility as a potential opportunity.
Like platinum, silver markets continue to demonstrate a possible reversal pattern to the upside, providing even further evidence of bullish structure and momentum. Since late spring, prices for silver markets dropped 14% from their May peaks. But since hitting a new low in late June 2023, silver markets have risen 10%, nearing $25/oz. Nevertheless, analysts have not yet confirmed any uptrend within the current market structure.
Both platinum and sliver would need continuous bullish momentum to confirm a breakout and drive prices into an uptrend.
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Is the Dollar Index Running Out of Steam? Will This Affect Metals Prices?
The DYX index recently entered an upward trend, rising over 4% since the low of July 2023. However, having reached $104, prices continue to encounter potential resistance levels. Indeed, the index has been between $106 and $99 for the past couple months. This indicates a sideways trend, which could act as a driving force as markets begin to reach the lows and highs of the range.
Still, the question remains: should the dollar index breakout of such levels?
Considering recent Fed data regarding further rate increases and holds, traders remained particularly observant when the dollar began to ease up over an 11 week peak. However, if a breakout occurs, this price action within the dollar would establish a new trend within the index. More than that, it would certainly drive metals prices – including platinum and silver – to either form new trends or continue their current ones.
Still, price action for the dollar index would need to confirm a breakout of such levels with strong momentum and volume. It would also need to demonstrate confirmation patterns such as a higher lows and highs, or lower highs and lows.
When the next Fed meeting occurs in fall, prices will paint a clearer picture of what’s happening in the index. This will provide both traders and buyers a clearer bias as points of interests are met within cross-market price action.
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