Platinum weekly special report based On 1.00 Lot Calculation:
- PLATINUM USE AND MARKET SHARE: Platinum is used for a variety of sensor applications, including oxygen sensors in car exhaust systems. Oxygen sensors are used to help run a gasoline engine more efficiently. BIGGEST PLATINUM PRODUCERS IN THE WORLD: South Africa (72.8%), Russia (8-10%), Zimbabwe (5%) and Canada (1%). Platinum is employed as a catalyst in many industrial processes. It is used to make semiconductor crystals and the crystals that produce laser light.
- EVENT: (US Nonfarm Payrolls and Unemployment, December 8th, 2023 GMT 13:30): The United States will be releasing nonfarm payrolls and unemployment data. Nonfarm payrolls have been trending lower recently, while unemployment has been inching higher. If the Nonfarm payrolls continue to fall while unemployment rises, there could be extended US dollar weakness. For November some economists expect a rise from 150K to 180K.
- EVENT: (Consumer Price index (CPI) in the US for November, December 12th, 2023 GMT 13:30): US inflation in October fell below market expectations causing stocks and bonds to rally whilst the dollar and US Treasury yields weakened. A key measure of inflation averaged 2.5% over the six months ending in October, near the Fed's 2% target. If CPI continues to weaken, it can reaffirm the FED stance to keep current interest rates levels.
- EVENT: (Federal Reserve Interest Rate Decision, December 13th,2023): The Federal Reserve kept interest rates at 5.50% (Its highest in 22 years) in November. No change is expected at the December meeting as well. Fed Chair Powell pushed back against Wall Street’s growing expectations of interest-rate cuts in the first half of 2024, saying the committee will move cautiously with borrowing costs at a 22-year high but retain the option to hike further.
- NORNICKEL EXPECTS PALLADIUM AND PLATINUM SHORTAGE TO WIDEN THIS YEAR. Nornickel expects palladium and platinum shortage to widen this year. In its December report they stated that increase of primary supply, mainly attributed to resilience of South African mining companies to electricity disruptions, will not be enough to offset rising automotive and industrial demand for platinum, as well as lower recycling. Importantly, the company sees a platinum market deficit of -0.4 Moz this year, compared to its previous view of a balanced market due to lower secondary supply.
PRICE ACTION:
- PALLADIUM TRADES 48% BELOW ITS ALL - TIME HIGH OF $1744.5. Palladium currently trades around $899.8, and if a full recovery follows its recent all-time high, this could be an upside of around 210.4%. However, the price could also decline further.
- ANALYST OPINION (First half of 2014): Deutsche Bank expects a price of $1,140 in 2024. Commerzbank estimates $1,200, while Bank of America forecasts $1100. Source: Bloomberg
PLATINUM, December 7, 2023
Current Price: 899.80
|
PLATINUM |
Weekly |
|
Trend direction |
|
|
1,050.00 |
|
|
995.00 |
|
|
945.00 |
|
|
855.00 |
|
|
830.00 |
|
|
800.00 |
Example of calculation based on weekly trend direction for 1 Lot1
|
PLATINUM |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
15,020.00 |
9,520.00 |
4,520.00 |
-4,480.00 |
-6,980.00 |
-9,980.00 |
|
Profit or loss in €² |
13,928.49 |
8,828.18 |
4,191.53 |
-4,154.44 |
-6,472.76 |
-9,254.75 |
|
Profit or loss in £² |
11,935.08 |
7,564.71 |
3,591.65 |
-3,559.86 |
-5,546.40 |
-7,930.23 |
|
Profit or loss in C$² |
20,410.98 |
12,936.92 |
6,142.32 |
-6,087.96 |
-9,485.26 |
-13,562.02 |
1. 1 lot is equivalent of 100 units
2. Calculations for exchange rate used as of 09:25 (GMT) 07/12/2023
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
· You may wish to consider closing your position in profit, even if it is lower than suggested one
· Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more details