New Day, Same Old Story For Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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