PPLT’s price “recently bounced off of the support of its 200-day moving average. In technical analysis, this long-term moving average is generally used to identify key pivot points given the predictability of its influence. Notice how the price bounced off the support on each occasion in 2016 since it broke above back in March. Technical traders would expect this behavior to continue, and many will likely look to place their stop-loss orders below $95.65 in an attempt to make the most of the risk/reward setup,” according to Investopedia.
Related: Gold Demand is Robust
Looking ahead, the ongoing negative interest rate environment, with European and Japanese central banks cutting benchmark rates deeper into the red to promote growth, could push investors toward precious metals as a more stable store of wealth.
Moreover, unlike gold, palladium, platinum and silver see much higher industrial demand. The precious metal enjoys heavy industrial demand that benefits from an expanding global economy.
For more news on Precious Metals ETFs, visit our Precious Metals category.