Platinum extended its correction from the recent highs above $1200, but as long the price is above $1000, there is no risk of the bear market.

Platinum continues to trade above $1000 support, but the concerns that the fast-spreading Delta variant could hit the economy could negatively influence this precious metal price in the upcoming days. The price of gold and silver usually rises when the economy is in a slump, while Platinum’s chart shows the opposite, and the price of Platinum could fall if the pandemic situation worsens as investors look for safer places to invest their money.

Delta is now the dominant variant and accounts for more than 50% of positive COVID-19 samples in many countries, and according to the report from the American Association of Individual Investors, investor optimism fell to the lowest level since October 2020.

Last week, the U.S. Federal Reserve left its monetary policy unchanged even though the economy has continued to progress and inflation continues to be at a high level. U.S. Federal Reserve Chairman Jerome Powell said that inflationary pressures are likely to be temporary and concluded that “substantial further progress” toward the Fed’s goal of stable prices and maximum employment has not yet been achieved.

Jerome Powell also said the fast-spreading Delta variant of the coronavirus represents an issue for the U.S. economy and noted that the central bank is still a ways away from considering raising interest rates. The United States is experiencing rising numbers of COVID-19 cases, especially in areas with lower vaccination rates, and if the situation continues, it will pose a risk to the economic comeback.

The U.S. president Joe Biden has been seeking ways to increase vaccination levels in the country, and he even urged local governments to pay people to get vaccinated. On the other side, if the situation with Delta calms down, demand for Platinum could expand even further, and investors in this precious metal stand to gain a lot more for taking a comparatively smaller risk.

More than 75% of global Platinum is from South Africa, and this precious metal is about 15-20 times scarcer than gold. If you decide to trade Platinum in August 2021, the current price level still represents a good value for what you pay, and the risk remains acceptable.

The current resistance levels are $1100 and $1200; $1000 represents the strong support level. Platinum still has a good risk/reward ratio, and if the price jumps above $1100, the next target could be around $1150.

On the other side, if the price falls below $1000, it would be a firm “sell” signal, and we have the open way to $900.

Platinum continues to trade above $1000 support, but the concerns that the fast-spreading Delta variant could hit the economy could negatively influence this precious metal price in the upcoming days. As long the price is above $1000, there is no risk of the bear market; still, if the price falls below $1000, it would be a strong “sell” signal.

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