Platinum has weakened from its recent highs above $1100 as the uncertainty of potential outcomes between Ukraine and Russia continues to worry investors.
Foreign ministers from the G7 group said they saw no evidence that Russia is reducing military activity near Ukraine’s borders, and investors will continue to watch this situation very carefully.
There is no evidence that Russia is reducing military activityPlatinum continues to trade above $1000 support, but the uncertainty of potential outcomes between Ukraine and Russia could negatively influence this precious metal price in the upcoming days.
Foreign ministers from the G7 group of rich nations said this Saturday they saw no evidence that Russia is reducing military activity near Ukraine’s borders, and the price of Platinum could fall if the situation worsens as investors look for safer places to invest their money. Foreign ministers from the G7 group added:
We call on Russia to choose the path of diplomacy, to de-escalate tensions, to substantively withdraw military forces from the proximity of Ukraine’s borders, and to fully abide by international commitments.
Russia has said it has no intention to attack Ukraine, while EU policymakers believe that the fact that Russian-backed separatists packed civilians onto buses out of breakaway regions in east Ukraine proves that Russia plans an invasion of its neighbor.
Speculation about the Federal Reserve’s next move also weighed on financial markets after Fed Bank President John Williams said that it would be appropriate to hike interest rates in March.
The U.S. Bureau of Labor Statistics announced that the U.S. consumer price index for January reached its highest level since February 1982, and the U.S. Federal Reserve is likely to meet market expectations for a 25-basis-point rate hike in March.
Fed Chairman Jerome Powell said that there is more room for further policy tightening without hurting employment, and Morgan Stanley expects the Fed to set a more aggressive tone to fight inflation after the hike in March.
Technical analysis
Data source: tradingview.com The current resistance levels are $1100 and $1200; $1000 represents the strong support level.
Platinum has weakened from its recent highs, and if the price falls below $1000, it would be a firm “sell” signal, and we have the open way to $900. On the other side, if the price jumps above $1100, the next target could be around $1150.
SummaryThe uncertainty of potential outcomes between Ukraine and Russia continues to worry investors, and the price of Platinum could fall if the situation worsens as investors look for safer places to invest their money. Platinum has weakened from its recent highs, and if the price falls below support at $1000, it would be a firm “sell” signal, and we have the open way to $900.
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