XPT/USD Under Pressure Amid Risk-Off
Platinum hovers around $950 to mark a three-day decline coming into Monday’s European session. The metal has plunged to its lowest levels in a week, weighed down by the heightened risk-aversion in the markets and a strong US dollar.
The coronavirus comeback in China is also rubbing salt on the already wounded market sentiment caused by the chaos that is the Russian invasion of Ukraine. Add to that the concerns of another aggression by the Fed this week.
The resulting slowdown in operations in China caused by stricter Covid-19 measures poses a threat to the global supply chain given China’s key role in the macroeconomic cycle.
The US Dollar Index advances to new highs after two decades near 104.20 as investors price in a 75 basis point rate hike by the Fed in response to the solid US jobs report.
Continued risk-aversion is likely to put XPT/USD under pressure, although Wednesday’s US Consumer Price Index (CPI) data will be key.