Platinum market analysis
When reading the precious metal market, platinum and palladium are often left on the side, while gold and silver take the front seats. In this series, we’ll concentrate on platinum and palladium and their relationship with gold.
Platinum has been a precise downward streak over the past ten years. Platinum used to be more expensive than gold. As a result, it was given a higher pedestal than gold in the jewelry market. Platinum bottomed close to $800 during the 2008 crisis. It rose and almost doubled in price by 2010.
Platinum didn’t stay at $800 for long. It could have a potential upswing in the longer run. Platinum is used extensively in engines for diesel-based cars. It’s headed for a surplus for the third straight year.
When reading the platinum market, it’s important to analyze the comparative performance of platinum and gold by using the gold-platinum ratio or spread. The spread is a measurement of the number of platinum ounces it takes to buy a single ounce of gold.
The gold-platinum spread was ~1.34 on July 19, 2017. The RSI (relative strength index) level for the gold-platinum spread is at 45.
Royal Gold's correlation fell from a three-year correlation of ~0.75 and a year-to-date correlation of ~0.72 with gold.
Today, IHS Markit published its purchasing managers' indexes or PMIs for May countries around the world.
Best Buy (BBY) reported better-than-expected earnings for the first quarter of fiscal 2020, which ended on May 4.
On May 23 at 12:46 PM EDT, Apple (AAPL) was trading at $179.12 with a 2.0% loss for the day.
The CBOE Volatility Index has been sitting at very low levels for most of 2019.
On May 23, CannTrust (CTST) was trading nearly 4.1% lower, while Cronos Group (CRON) fell 3.3%.
US equity markets are in the red today amid the escalation in the US-China trade war.