Platinum market mood: A bearish Fed could support the price higher [Video]
|Listen to the latest market mood for Platinum.
Gold is about to approach a very strong time of year in terms of seasonal demand. The Chinese Lunar New Year drives up demand for gold as traditionally gifts of gold are given over this period which drives up the physical demand. However, platinum may offer a better buy ahead of the Fed’s meeting. If the Federal Reserve are bearish and add some kind of easing bias into the meeting then the USD will weaken. That supports commodities higher. Furthermore, any positive vaccine news will also support platinum due to it being an industrial metal. With Platinum rising higher on vaccine hopes and a bearish Fed the stage could be set for some strong gains over the next few weeks. One to watch!
Therefore, expect Platinum buyers.
Trade Risks: The main risk to this trade is a strong USD if the FED are more optimistic than the market was expecting.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.