Today, we present you a mid-term investment overview of the XPT/USD pair.

Investors are trying to predict the steps of the monetary authorities regarding interest rate adjustments, redirecting their capital to safe haven assets and, in particular, precious metals to minimize risks, but platinum and palladium cannot significantly add value compared to gold and silver.

The key event was the decision of one of the largest platforms in the Asia-Pacific region, GFEX, to launch trading in futures contracts for #PA and #XPT. During a speech at the Shanghai Platinum Week (SPW) event, Chen Xuanchen, head of the futures contract development department at the exchange, noted that their feature is a twelve-month circulation period, rather than the four-month period used by other platforms, opening up more flexible opportunities for hedging and planning to investors. In addition, contracts have the possibility of delivery in any form if their validity period expires: in particular, it can be carried out both in traditional ingots and in powder form, which is important in the industrial use of metals. According to Trevor Raymond, CEO of the World Platinum Investment Council (WPIC), the specifics of the new contracts can significantly support demand in China, where last year there was an increase in sales of platinum bars weighing up to 0.500 kg by 37.0% to 52.0 thousand ounces.

Despite the fact that the demand for #XPT on the base exchanges has not changed much recently, the asset once again managed to break into the leaders in the spread position with its main competitor, palladium, adding 36.0 dollars. Nevertheless, the situation may change, since even during the spring of this year, the exchange has already occurred several times, which creates the possibility of short speculative transactions. Nevertheless, the situation with the distribution of contracts on the American commodity exchange does not indicate a serious increase in metal quotations: according to a report by the US Commodity Futures Trading Commission (CFTC), the number of buy positions among manufacturers was fixed at around 3,017 thousand, while the sell position is 32,911 thousand, and this gap has recently only grew bigger.

In addition to fundamental factors, technical indicators indicate a possible continuation of the decline in the near future: on the W1 chart, the price is trading within the descending channel of 1070.00–760.00, moving away from the resistance line.

At the moment, the price is holding below the annual maximum of 1080.00, which is a key resistance and the main marker of continued growth. In case of consolidation above this mark, the "bulls" will receive an additional driver to overcome the resistance line and exit the channel, but given the dynamic rebound downwards, the current volume of purchases in the market is not enough.

Key levels can be seen on the D1 chart.

As can be seen on the chart, the current movement is developing within the ascending range of 1120.00–960.00, and now the price has rushed to the support line, simultaneously forming a "head and shoulders" reversal pattern with a "neck" line around 980.00.

In the area of the annual maximum of 1080.00, there is a zone of cancellation of the sell signal, in case of overcoming which the downward scenario will either be canceled or postponed in time, and open sell positions should be liquidated.

Near the support line of the descending channel, located at 740.00, there is a target zone; if it's reached, profit should be taken on open sell positions.

In more detail, trade entry levels can be evaluated on the H4 chart.

The entry level for sell transactions is located at 946.00, which coincides with the minimum of June 17, and it may take several days to receive a signal to enter the market. Technically, overcoming the local minimum will be implemented, after which there will be no significant barriers on the price's path to the target level of 740.00, and the position can be implemented.

Given the average daily volatility of the trading instrument over the past month, which is 1143.0 points, the price movement to the target zone of 740.00 may take approximately 59 trading sessions; however, with increased volatility in metals, this period may be reduced to 40 trading days.