Platinum: Bullish Stance Maintained as Breakout Test Looms - OCBC

OCBC strategist Christopher Wong maintains a tactically bullish stance on platinum, despite recent momentum fading near the $1,860-$1,910 range, preferring a buy-the-dips approach. The bank sees mildly constructive momentum intact, with the market closely watching a breakout test at key resistance.

**Key Resistance Under Scrutiny**

OCBC notes the key resistance zone for platinum sits at $1,863-$1,943. A decisive break above this range could open upside potential toward the $2,065 level. Recent price action shows momentum slowing as platinum approaches this resistance area, but the overall bullish structure remains unbroken.

**Supply-Demand Fundamentals Provide Support**

From a supply-demand perspective, platinum's fundamentals underpin the bullish case. Annual platinum production is less than 0.5% of gold's output, with over 80% of supply concentrated in Russia and South Africa—a highly concentrated supply side vulnerable to geopolitical and production disruptions. Meanwhile, declining inventory trends offer underlying price support. China, the world's largest platinum consumer, has seen significant growth in investment demand for platinum bars and coins, projected to account for 80% of total demand in 2025—a structural shift adding incremental buying power to the market.

**Short-Term Consolidation Doesn't Alter Buy-the-Dips Strategy**

Despite OCBC recently slashing its end-2026 price targets for gold and silver on concerns over higher real yields and a stronger dollar, the bank's tactical view on platinum remains unchanged. Strategists emphasize that mildly bullish momentum persists, and consolidation ahead of resistance represents a healthy correction, keeping buy-the-dips as the preferred trading approach.