Cautious Trading Dominates Platinum Price Ahead of US CPI Data

Investors remain cautious ahead of this week's US CPI data release, but eased bets on a September rate hike have bolstered precious metals like platinum. The Platinum (XPTUSD) price edged higher on Tuesday while remaining range-bound, with technical momentum and the fear of missing out likely to test crucial resistance levels at $1,800 and $1,830. The USD has been trading at a 7-week low since the negative jobs surprise last week, supporting platinum's strength.

The market expects US inflation figures to show cooling off, which would keep the USD soft and support precious metals. However, investors are cautious ahead of the CPI data release on Wednesday, with the fear & greed index showing the market sentiment at 65, a greed level. If the CPI prints hotter than expected, it could push the Fed back toward a September hike and send the USD higher, breaking the $1,707 support and collapsing the range trade.

The platinum price has been trading within a defined range, with support near the 50-day EMA at $1,707 and resistance at $1,790 and then $1,800/$1,830. A breakout above $1,800 is likely if CPI confirms cooling inflation, but the technicals point to stable resistance levels.