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New Day, Same Old Story For Gold

Commentaries & Views

Every day I wake up thinking that we may see a new day for gold, and every day there is disappointment. The trade in gold is a lot like life -- good days, bad days, highs and lows. Like the markets, life never announces what is going to happen next.

Gold is in a low period now; every day is a bad day. The action in gold feels like a bottomless pit with no hope that it will ever rally again. Traders continue to try and pick the bottom only to see more selling and a new bottom.

Life and trading are statistical and work off similar actuarial tables. The pattern in gold suggests that lower prices are coming but with each down day there is hope of a bottom. Trying to pick the bottom or top in any market is often a losing proposition. Sometimes the best trade is the one of patience, which is the case for the metals now.

The fear of missing out has broken more traders and investors than anything else in markets. Remember, it’s better to wish you were in a trade than you weren’t. For now, we observe and look for a valid footprint

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.