Platinum Price Breaks $1,700, Eyes $1,900 Resistance

Platinum prices have seen significant gains in recent days, rising above $1,700 last week. This breakout has put the focus on the next key level of resistance at $1,900. However, despite this technical improvement, the overall outlook for platinum remains uncertain due to weak domestic demand in China and the rapid growth of pure electric vehicles.

The mixed economic signals from China have been a major factor influencing platinum prices. The metal has gained over 6% last week as investors assessed these mixed signals. But the risks associated with weak Chinese demand and rising electric-vehicle sales continue to weigh on the market.

The technical structure of platinum has improved, but breaking above $1,900 is necessary to confirm a stronger recovery. Ratio charts also suggest that platinum may underperform gold (XAU) and silver (XAG) in the short to medium term.