Platinum price prediction after WPIC’s quarterly report

Platinum price is on a corrective rebound after plunging into the oversold territory earlier in the week. While it may remain under pressure in the near term, 2022’s outlook is rather positive.

Quarterly outlook

Platinum price is on a rebound after the week-long downtrend. Earlier in the week, it plunged further after World Platinum Investment Council (WPIC) adjusted its market outlook for Q4’21. In the Platinum Quarterly report released on 24^th November, the organization raised the expected surplus for 2021’s last quarter from 190,000 ounces to 769,000. Besides, it expects the precious metal to remain in surplus in the coming year.

Notably, reduced investment demand and the chip shortage have contributed to the increased supply. Nonetheless, the expected rise in demand is expected to boost platinum price in coming months. According to WPIC, the metal’s demand in the automotive industry will likely grow by 14% and 20% in 2021 and 2022 respectively. In the industrial sector, it will likely record a recovery rate of 26% in 2021 and exceed 2019 levels in the coming year. The organization also expects heightened demand from the jewelry sector.

Platinum price prediction

Platinum price has taken a break from its week-long downtrend. In the past week, it rose to a four-month at 1,112.03. Since then, it has dropped by about 12.10%. At the time of writing, the precious metal was up by 1.79% at 992.33.

On a four-hour chart, it is trading below the 25 and 50-day exponential moving averages. Following its corrective rebound, it is now out of the oversold territory with an RSI of 41. Earlier in the week, it plunged to a one-and-a-half month low that pushed it to the oversold zone with an RSI of 17.

 Based on both the fundamentals and technicals, platinum price will likely remain under pressure for a while. In the immediate term, it may continue trading within a horizontal channel with the week’s low of 956.19 and 25-day EMA of 1004.35 being the lower and upper borders respectively.  A move below the channel’s lower border may place the support level at around 945.65. On the upside, it may rebound further to the 50-day EMA at 1,024.38 before pulling back to around the psychological level of 1,000.