Platinum Poised to Outshine Palladium Amidst Rate Hike Uncertainty

Platinum prices have dropped towards $1,725 as rising oil prices and a stronger dollar increased the risk of a rate hike in September. Despite this short-term pressure, platinum is expected to outperform palladium due to its tight supply and new industrial demand.

Rising rate hike expectations remain the main headwind for both metals, but platinum has a stronger outlook in the long term. To protect its bullish structure, platinum must hold above $1,650.

Palladium, on the other hand, may test $1,200 as short-term selling pressure continues. The technical levels and conditions that may change this outlook are discussed below.