Gold, Silver Tormenting Traders And Investors
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There are times when market patterns just torment investors, and the metals markets are those markets now. The constant churning with lack of action always causes traders and investors to end up making bad decisions.
No matter what market or product you trade or invest in, the patterns are always the same. Markets work through different phases, and the metals are now in consolidation at the bottom end of the range. After being under pressure for the last couple of months, both gold and silver are sitting on support in consolidation, which is the time of most uncertainty to begin with.
When markets are in the consolidation phase, the best trade is no trade. This phase is known as the greatest time of uncertainty and is impossible to trade except for those who want to guess and gamble. The trend is down although it’s possible a bottom has been made. The key here is to watch the levels -- gold at $1,270-$1,280 and silver $14.80 -$15.
Eventually these markets will break out one way or the other. There is no benefit to entering either side now; the edge is gained by waiting for a solid footprint or commitment in direction. We are long-term bullish short-term bearish and neutral right now, obviously tormented by the metals’ inability to make a commitment. We are observing for now.