XPT/USD: THE GOLDMAN SACHS GROUP INDIRECTLY ADMITTED THE FACT OF MANIPULATION OF PRICES FOR PLATINUM AND PALLADIUM

Current trend

Quotes of the XPT/USD pair are again trading above 960.0 dollars per ounce this week, and the local upward correction has high prospects for continuation with the support of the fundamental background.

On Friday it became known that representatives of the American conglomerate The Goldman Sachs Group reached a settlement agreement to resolve a class action lawsuit filed back in 2014 and related to the manipulation of market benchmarks for physical platinum and palladium prices on commodity exchanges. The plaintiff in the case was jewelry manufacturer Modern Settings LLC, which accused several large financial institutions of using inside information about customer transactions to profit from fluctuations in precious metals prices. Thus, the achievement of consensus, as well as the message that the management of The Goldman Sachs Group has reserved funds to satisfy legal claims (the amount is not disclosed), is indirect confirmation of illegal data exchange. Analysts are confident that after this precedent, investor interest in platinum and palladium may return, creating volatility in quotes. The asset spread position is now stable, with #XPT trading above #PA by 17.0 dollars, which is within the long-term range of 50.0 dollars.

Amid reports of the completion of the trial, the price of platinum is rising, but the pace is not yet sufficient for a sustainable trend to emerge. According to the latest report from the US Commodity Futures Trading Commission (CFTC), the situation in positions backed by real money is unchanged: sellers hold the lead with 32.168 thousand contracts, while buyers opened 28.360 thousand new transactions. 

Support and resistance

On the daily chart, the instrument is trading within the sideways channel 1010.00–850.00, rising again in the direction of the resistance line.

Technical indicators are holding an unsteady buy signal that was received last week. The AO histogram is in an upward trend above the zero level, confirming the prospects for increased growth, and fast EMAs on the Alligator indicator are fixed above the signal line. 

Support levels: 956.00, 920.00.

Resistance levels: 980.00, 1010.00.

Trading tips

Long positions can be opened when the price consolidates above the resistance level of 980.00 with the target of 1010.00. Stop-loss — 960.00. Implementation time: 7 days and more.

Short positions can be opened after the price consolidates below the support level of 956.00 with the target of 920.00. Stop-loss — 970.00.