Giles Coghlan LLB, Lth, MA
Financial Source
Platinum tends to see gains around the start of the year as industrial purchases are made for the year 2022. Yes, global growth concerns have been growing, but many company orders for 2023 would have already been made and that could mean platinum demand holds up even as global sentiment wobbles.
Platinum has a strong seasonal pattern. Over the last 25 years, platinum has gained 20 times between January 29 and February 19. The average return has been a strong 4.11% and the maximum gain was over 25% in 2008. The largest loss was a relatively mild 4.13% in 2006.
Does this make a platinum play worthwhile?
Major Trade Risks: The major trade risk here is that the seasonal pattern does not repeat itself and global sentiment manages to still drag down platinum demand.
Our products and commentary provides general advice that do not take into account your personal objectives, financial situation or needs. The content of this website must not be construed as personal advice.
Recommended Content
Editors’ Picks
EUR/USD hovers around 1.0700 ahead of German IFO survey
EUR/USD is consolidating recovery gains at around 1.0700 in the European morning on Wednesday. The pair stays afloat amid strong Eurozone business activity data against cooling US manufacturing and services sectors. Germany's IFO survey is next in focus.
USD/JPY refreshes 34-year high, attacks 155.00 as intervention risks loom
USD/JPY is renewing a multi-decade high, closing in on 155.00. Traders turn cautious on heightened risks of Japan's FX intervention. Broad US Dollar rebound aids the upside in the major. US Durable Goods data are next on tap.
Gold price flat lines above $2,300 mark, looks to US macro data for fresh impetus
Gold price (XAU/USD) struggles to capitalize on the previous day's bounce from over a two-week low – levels just below the $2,300 mark – and oscillates in a narrow range heading into the European session on Wednesday.
Worldcoin looks set for comeback despite Nvidia’s 22% crash Premium
Worldcoin (WLD) price is in a better position than last week's and shows signs of a potential comeback. This development occurs amid the sharp decline in the valuation of the popular GPU manufacturer Nvidia.
Three fundamentals for the week: US GDP, BoJ and the Fed's favorite inflation gauge stand out Premium
While it is hard to predict when geopolitical news erupts, the level of tension is lower – allowing for key data to have its say. This week's US figures are set to shape the Federal Reserve's decision next week – and the Bank of Japan may struggle to halt the Yen's deterioration.