Platinum Boosted by Strong China Data, Back Above $1,200
Early on Friday, platinum has made some slight gains after trading weak through most of the week, but the uptrend still remains a challenge for the industrial metal, like we had forecast previously. At the time of writing, platinum is trading at around $1,2, rising back above the key $1,203 level.
The uptick in the industrial metal prices could have been supported by recent positive economic data releases out of the US and China, raising hopes for quick economic recovery. During the previous session, US retail sales reported a 9.8% increase for the month even as initial jobless claims fell to a pre-pandemic level of 576k, beating economists’ forecast which was for a reading of 700k.
The optimism from the previous session strengthened in Friday’s Asian session after China released its GDP data for the first quarter of the year, revealing a record pace of growth after last year’s slump during the same time last year. In addition, China also reported a strong increase in exports and retail sales, revealing an improvement in both external and domestic demand, lending a boost to platinum prices.
The precious metal also received support from a weakness in the US dollar which made platinum more affordable for holders of other currencies to purchase. However, technical analysis points to more weakness in the metal as long as the price stays below the key resistance level at $1,230.
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