The recent selloff in platinum for July delivery has led to a new contract low but is currently bouncing off, trading at 884.8.  Although the path of least resistance appears down, platinum seems to be basing a bottom with the U.S. dollar currently selling off from its intraday high earlier this morning. With interest rates chasing inflation expectations and the 10-year yield hitting a 7 year high late last week, the U.S. dollar has continued to surge. The prospect of rising U.S. yield has fueled the up move in the U.S. dollar which has put significant downward pressure on the precious metals, with spillover on platinum. Demand for platinum has continued to be largely influenced by auto sales coming off today’s low with increased Japanese car exports as well improved trade talks between the U.S. and China and a recent upside move in equities. It will be important to monitor platinum production in South Africa with an annual deficit still expected, as well demand from India with consumption expected to exceed production.  July Platinum appears oversold with support coming in at 879 and 874 with resistance around 891 and 897.

Platinum Jul ’18 Daily Chart

Platinum Jul '18 Daily Chart

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Alex Turro

Senior Market Strategist

Alex began his career with an IB at the Chicago Board of Trade after graduating with a BA/BS from Indiana University. He then went on to work for a proprietary trading software company before joining RJO Futures as a Market Strategist.

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