Platinum price opened the week with a slight uptick, supported by a pullback in crude oil prices, yet the broader downtrend persists as investors brace for the Federal Reserve's policy meeting and the release of US inflation data. The metal has been under sustained selling pressure for months, driven by persistent inflation concerns and the Fed's hawkish monetary policy stance.
Oil price easing offers temporary relief
On Monday, Brent crude eased from a five-week high of $110 per barrel to around $107.77, following President Trump's decision to waive tariffs and sanctions on Russia, a move expected to boost Russian fuel exports. The decline in oil prices helped alleviate some inflation worries, providing a modest lift to platinum. However, Brent remains above the psychologically significant $100 level, maintaining an upward trajectory over the past two weeks.
Fed meeting and PCE data in the spotlight
Investors are now turning their attention to the Federal Reserve's meeting scheduled for this week, along with the US Personal Consumption Expenditures (PCE) price index, a key inflation gauge. Market expectations are largely pricing in a rate hike in December, while the Fed is anticipated to hold rates steady at the October meeting. As a result, the immediate policy decision may not be a major catalyst for platinum, but the accompanying commentary and inflation data could shape the outlook for future rate moves.
Higher interest rates typically weigh on non-yielding assets like platinum, as they increase the opportunity cost of holding them. The Fed's hawkish tilt has already contributed to a significant decline in platinum prices over the past several weeks.
Technical analysis: bearish signals persist
From a technical perspective, platinum remains under pressure. The metal has declined for seven of the past eight weeks, and after reaching a high in early June, it has fallen nearly 15% due to the Fed's hawkish stance. Currently trading around $1,650 per ounce, platinum is only about 10% above its level from the same period in 2025, following a sharp drop from its all-time high of $2,918 in January 2026.
On the daily chart, platinum is trading below both the 25-day and 50-day exponential moving averages (EMAs), with a bearish death cross forming two weeks ago when the short-term EMA crossed below the medium-term EMA. The Relative Strength Index (RSI) stands at 43, suggesting that any upside may be limited near the neutral 50 level.
Given these technical and fundamental factors, platinum is likely to face resistance at $1,680 in the near term. Support is seen at $1,595, and a recovery attempt could be capped at $1,727, keeping the metal in a range-bound pattern.
As the week progresses, the Fed's tone and the PCE data will be crucial in determining whether platinum can break out of its current consolidation or extend its decline.
This article is for informational purposes only and does not constitute financial advice.
