Platinum Price Forecast: XPT/USD tracks gold as sellers attack $950

• Platinum prices drop for the third consecutive day to refresh one-week low.
• Risk-aversion, Fed expectations underpin USD’s safe-haven appeal.
• Wednesday’s US inflation data, qualitative catalysts to direct short-term moves.

Platinum (XPT/USD) takes offers around $950 to print a three-day downtrend heading into Monday’s European session. The metal bears the burden of a broad risk-off mood, as well as a strong US dollar, as it dropped to the lowest levels in a week.

Coronavirus resurgence in China joins the global ire towards Russia, due to its invasion of Ukraine, act as the key risk catalysts of late. Also weighing on the market sentiment are chatters surrounding fears of faster monetary policy tightening, mainly due to a jump in inflation that challenges global economic growth.

Worsening covid conditions in China recently pushed Shanghai and Beijing, the key cities, to take more strict actions and announce widespread virus testing to tame the COVID-19. The resulted pause in the activities challenges the global supply chain due to China’s key place in the macroeconomic cycle.

Elsewhere, the Group of Seven (G7) nations’ sanctions on Russia, as well as Moscow’s military aggression in Eastern Ukraine, add strength to the risk-off mood.

Furthermore, the US Dollar Index (DXY) rallies to the fresh high in two decades around 104.10 by the press time, as markets keep the odds of a 75 basis points rate hike from the Fed on the table following the strong US jobs report. That said, the US Nonfarm Payrolls (NFP) reprinted the 428K figures, if compared to the revised figures for March, by surpassing the 391K forecasts. On the same line, the Unemployment Rate also remained intact at 3.6%.

Looking forward, the risk-aversion wave can keep XPT/USD pressured but Wednesday’s US Consumer Price Index (CPI) data will be important to watch.

Technical analysis

Unless crossing a seven-week-old descending resistance line, around $996.00, platinum prices stay directed towards the yearly low surrounding $908.00. Also acting as the short-term key resistance is the 200-DMA level near $1005.00.