Platinum prices are currently on the rise, primarily due to short-covering, which has been influenced by the increasing prices of gold and silver. However, despite this uptick, platinum, an industrial metal, seems to be edging closer to a significant decline rather than experiencing a substantial upward breakout.

Technically, while gold and silver are soaring through their 50- and 200- day moving averages, platinum is struggling with its intermediate and long-term moving averages at $914.07 and $924.36, respectively.

In recent developments, Paul Dunne, CEO of Northam Platinum (NPHJ.J), a leading South African platinum mining company, expressed his concerns on Friday. He highlighted that platinum mining firms in South Africa, the foremost global supplier of the metal, are grappling with extremely challenging market conditions. According to Dunne, the sector is undergoing the most severe crisis it has faced in thirty years, with plummeting prices exerting intense pressure.

Dunne remarked, “I personally believe it’s the worst crisis I have seen in three decades, on a relative basis,” emphasizing the critical situation facing the industry. He added, “The squeeze on the industry is severe,” during a discussion with journalists.