Platinum Price Analysis Shows $1,700 Support Under Growing Pressure

The common charts demonstrate that the market continues to muddle through a prolonged pullback from over $2,100.

Spot platinum fell slightly to trade near $1,706, down from a 1.95% gain earlier in the day, on one of the intraday charts, and was around $1,697. The disparity is due to different market feeds, but the short-term price structure is still the same—platinum is being challenged at a key psychological support level.

Platinum Returns to $1,700 Support

Platinum is trading at the same level as it did when it opened, around $1,728, and climbing toward $1,755 early in the day on the one-day chart. Those gains were not maintained by buyers, and the price started to fall steadily throughout the morning.

The dealings picked up after platinum fell below the previous close of around $1,728. The price later pierced the upper $1,680 limit before climbing back a few dollars into the upper $1,697 range.

According to the TradingView data, the first significant level is in this movement, $1,700. But a continuation of the downward trend from it would bring the intraday low of the recent trading session back into focus around $1,688.

Traders can then focus on the $1,650-$1,675 area, where previous buying activity was seen.

On the positive side, platinum’s price needs to rebound by $1,725. A break back up over $1,750 would be required to break the recent string of low highs.

Wider Trend Remains Bearish

A longer timeframe chart of BitMEX will reveal that the price of platinum has been declining from the $2100 mark in late April down to the current price of $1700. Price had several short-term rallies in between, but each of these came off lower than the previous peak.

But a steep early-June sell-off took XPT out of the $1,900 range before another sell-off to $1,650. The market rallied back up to $1,800, only to fall again.

Interestingly, the Investing.com chart reveals that platinum has lost 13.9% in the past month and 15.75% in the last three months. It was also negative at 11.1% for the six-month period.

Nevertheless, both the 1-year and 5-year readings remained in positive territory, indicating that the current weakness is a part of a larger correction and not a total pullback from the longer-term historical gains.

Momentum Improves Despite Price Weakness

Meanwhile, short-term indicators have a positive sign of stabilization. The MACD line was in near parallel with its signal line, which was around -17.65, while the MACD line was around -13.08. The bearish momentum weakened as the histogram became positive at 4.56.

But both the MACD lines were still negative. This improvement is not a definite bull market reversal, but rather a rebound within a downtrend.

As per technical data, Chaikin Money Flow reached 0.55, indicating solid capital inflows during the recent rally. This is in contrast to the lack of buying in the price area and indicates that buyers have been engaged near the lower range.

Platinum is now in a definite technical test. A close below $1.700 would continue the downtrend, whereas a rejection above would keep the recovery process going. Resistance is focused around $1,725 and $1,750, while the recent high rise is around $1,800.