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Gold reverses

Commentaries & Views

Late last week gold and silver were rallying, looking to breakout to a new trend. We continued to stay short waiting for a reason to reverse. As it turns out there was no reversal in the metals. And now, they appear headed lower once again.

Last week I received email after email talking about the news and how we could possibly be short the markets. Many traders and investor make the crucial mistake of trying to trade news, which is always wrong. Those who trade the news always lose.

The most important piece of any market is price. Nothing else matters. Price dictates movement, price knows the news before it ever hits the street. All markets care about is one thing, which is price. It’s the only thing that really matters. By the time you hear the news, it’s old, if you try and trade it, you lose.

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.