Platinum price analysis as the US dollar eases ahead of NFP data

Platinum price made subtle price movements on Monday as the US dollar steadied ahead of the US jobs data. Late last week, the greenback erased most of the week’s gains as geopolitical uncertainties continue to impact the financial market. While the US dollar easing has yielded a slight recovery for the precious and industrial metal, it remains under selling pressure. 

Inflation pressures and interest rate jitters continue to weigh on platinum price. In the new week, the US jobs data are set to impact the US dollar and the broader market.

Platinum price trades at the periphery of the oversold zone

Platinum price is at the periphery of the oversold territory as uncertainties surrounding the US-Iran peace talks yield volatility. After retaliatory attacks between the two parties in the last couple of days, investors await the scheduled meeting in Qatar. 

Additionally, platinum price is set to trade within a rather tight range ahead of the week’s key macroeconomic data. More specifically, the US non-farm payrolls and unemployment rate are set to offer fresh cues on the labor market and outlook of the Fed’s policy. A sense of a stronger labor market will bolster the US dollar and add to the Fed’s hawkish stance while weighing on platinum price further. 

Indeed, the US dollar is on track to record its largest monthly gain in close to a year. Unless there is a clear dovish pivot by the Federal Reserve, or a surprise in the US jobs data, the greenback’s downside appears to be contained in the short term. Subsequently, platinum price is set to remain under selling pressure amid curbed gains and the sellers’ opportunity to retest lower levels.  

Platinum price technical analysis

XPT price chart | Source: TradingView

Platinum price moved subtly on Monday after hitting its seventh consecutive week of losses. Notably, the US dollar has eased from the 11-month high reached late last week. Subsequently, the precious and industrial metal is on recovery back within the channel that has shaped its price movements for about 5 months. At the time of writing, it was hovering around the channel’s lower border, which coincides with the crucial support zone of $1,595. 

As seen on its daily trading chart, platinum price is under selling pressure as it continues to trade below the short-term 25-day EMA and the medium-term 50-day EMA. Even with the slight recovery, the months-long bearish channel will likely shape its movements in the short term. Besides, at an RSI of 32, it is at the periphery of the oversold territory.

Based on these technical indicators, and the fundamentals, the bulls are keen on defending the support at $1,595. With the US jobs data in focus, platinum price will likely trade within a tight range in the ensuing sessions as $1,680 offers strong resistance. In response to the week’s key drivers, further gains will likely be curbed along the 25-day EMA at $1,753.

On the flip side, a reversal of the recent gains will give the bears a chance to retest the 7-month low hit last week at $1,550. A move below that level will invalidate this thesis and may activate the lower support at $$1,530.