Platinum price approaches oversold zone ahead of the US NFP data

Platinum price fell below the crucial zone of $1,650 an ounce on Friday to trade at its lowest level since mid-December 2025. A stronger US dollar continues to fuel the selling pressure, even as progress in the US-Iran peace talks ease inflation concerns. In the ensuing sessions, the market may record subtle movements ahead of the US nonfarm payrolls data.

Platinum price hovers near oversold zone 

Platinum price has been on a downtrend in recent months as conflict-driven uncertainties override forecasts on continued supply deficit. The quarterly report released by the World Platinum Council (WPC) for Q1’26 pointed to a deficit for the fourth consecutive year, abeit modest. Further decline in above-ground stocks and steady investment demand was set to support the metal’s prices. 

This support has maintained platinum price over 30% above its level at a similar period in 2025. However, increased recycling and reduced ETF inflows were expected to offset the gains. Besides, heightened inflation concerns emerging from the US-Iran war have curbed its upside as the US dollar strengthens. Indeed, the rise of the US dollar is one of its key bearish drivers. 

In the ensuing sessions, the focus will be on the US non-farm payrolls data after the hawkish tone in the latest FOMC policy statement. Economists will use these numbers to predict what to expect from the Fed.

Inflation, which remains elevated above the central bank’s target of 2%, is at the center of analysts’ predictions over a September rate hike. Subsequently, the US dollar extended its previous gains on Tuesday to trade at its highest level since mid-May 2025. Similar to other dollar-priced assets, platinum tends to trade inversely to the value of the greenback. 

Platinum price technical analysis

Platinum price chart | Source: TradingView

Platinum price edged lower to trade at its lowest level since mid-December 2025. The losses recorded in the new week are a continuation of the selling pressure that has seen the asset record six consecutive weeks in the red. At the time of writing, it was trading at $1,642 after recovering slightly from its intraday low of $1,628.

A look at its daily trading chart points to continued selling pressure in the short term. To begin with, platinum price is trading below the short-term 25-day EMA and the medium-term 50-day EMA. 

Besides, the bearish death-cross pattern formed over three months ago has remained in place. This bearish pattern forms when the short-term MA crosses a medium or long-term MA to the downside. 

At the same time, platinum price is at the periphery of the oversold territory at an RSI of 31. Notably, it is hovering around the lower border of the months-long bearish channel as the bulls strive for a corrective rebound.  

In line with these technical indicators, the support level at $1,624, which coincides with the bearish channel’s lower border, is worth watching in the near term. At that level, platinum price may record a slight recovery ahead of the US inflation data.

A corrective rebound will likely face resistance at $1,731. With further recovery, its gains will likely be curbed along the 25-day EMA at $1,812.