Platinum Slides Toward Oversold Levels Ahead of US Jobs Data

Key Moments

Fundamentals Weigh on Platinum as Dollar Strengthens

Platinum came under renewed pressure on Friday, breaking beneath the key $1,650 per ounce level and falling to its lowest point since mid-December 2025. The move has been driven largely by renewed strength in the US dollar, which has intensified selling in the metal even as progress in US-Iran peace negotiations has helped temper some inflation worries. Market participants are now expected to adopt a cautious stance in the coming sessions ahead of the release of US nonfarm payrolls data.

Recent months have seen platinum trend lower as geopolitical tensions overshadow outlooks that had pointed to a continued supply deficit. According to the World Platinum Council (WPC) quarterly report for Q1’26, the market was projected to remain in deficit for a fourth straight year, although the shortfall was described as modest. The report indicated that further drawdowns in above-ground inventories and steady investment demand were anticipated to underpin prices.

This fundamental backdrop has kept platinum trading more than 30% above where it stood during the same period in 2025. However, increased recycling activity and softer inflows into exchange-traded funds were expected to counter some of that support. Additionally, inflation concerns arising from the US-Iran war have capped the upside, coinciding with a firmer US dollar that has become one of the primary bearish forces for the metal.

Macro Focus: Jobs Data, Fed Path, and the US Dollar

Attention in the near term is turning to upcoming US non-farm payrolls figures, particularly following the hawkish tone in the most recent FOMC policy statement. Economists are expected to use the labor market data to refine their expectations for future Federal Reserve moves.

Inflation remains above the central bank’s 2% target and is central to analysts’ assessments around the possibility of a rate increase in September. Against this backdrop, the US dollar extended its earlier advance on Tuesday, reaching its strongest level since mid-May 2025. As with other assets priced in dollars, platinum typically exhibits an inverse relationship to moves in the greenback, amplifying the downside in the metal when the currency appreciates.

Price Action and Technical Picture

Platinum has continued to weaken, trading down to its lowest level since mid-December 2025. The latest decline extends a broader downtrend, with the metal logging six consecutive weekly losses. At the time of writing, platinum was quoted at $1,642, having staged a modest bounce from an intraday trough of $1,628.

Daily chart signals point to persistent downside pressure in the short term. Prices are currently below both the short-term 25-day exponential moving average (EMA) and the medium-term 50-day EMA, underscoring a bearish technical structure.

A downside crossover that formed more than three months ago – a so-called death-cross pattern where a short-term moving average crosses beneath a medium or long-term moving average – remains intact and continues to validate the broader negative bias.

Momentum indicators add to this picture. The relative strength index (RSI) is sitting at 31, placing platinum on the edge of oversold conditions. The metal is also trading close to the lower boundary of a multi-month descending channel, an area where buyers are attempting to trigger a corrective move higher.

Key Technical Levels to Watch

Based on current technical readings, the immediate focus is on support around $1,624, which aligns with the lower edge of the established bearish channel. This zone is seen as a key level in the near term and may provide a platform for a short-lived rebound ahead of upcoming US inflation data.

Any corrective move higher is likely to encounter initial resistance around $1,731. If buying interest strengthens beyond that point, additional upside could be challenged near the 25-day EMA around $1,812, where recovery attempts may start to fade.