Platinum market mood: A bearish Fed could support the price higher [Video]

Giles Coghlan LLB, Lth, MA Financial Source

Listen to the latest market mood for Platinum.

Gold is about to approach a very strong time of year in terms of seasonal demand. The Chinese Lunar New Year drives up demand for gold as traditionally gifts of gold are given over this period which drives up the physical demand. However, platinum may offer a better buy ahead of the Fed’s meeting. If the Federal Reserve are bearish and add some kind of easing bias into the meeting then the USD will weaken. That supports commodities higher. Furthermore, any positive vaccine news will also support platinum due to it being an industrial metal. With Platinum rising higher on vaccine hopes and a bearish Fed the stage could be set for some strong gains over the next few weeks. One to watch!

Therefore, expect Platinum buyers.

Trade Risks: The main risk to this trade is a strong USD if the FED are more optimistic than the market was expecting.

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Author

Giles Coghlan LLB, Lth, MA

Financial Source

Giles is the chief market analyst for Financial Source. His goal is to help you find simple, high-conviction fundamental trade opportunities. He has regular media presentations being featured in National and International Press.

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