It's a runaway; gold, silver and platinum breaking out
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Every day last week, we wrote about the patterns in the metals. They went from the ugly to strong. Those patterns are playing out this morning once again with gold, silver and platinum breaking out to new recent highs. Therefore, you never argue with price, which dictates everything.
Silver is parabolic and looks headed to $18 in the July futures, possibly higher. Platinum is right there and trying to chase down $900 in the July futures. Gold’s pattern is a little more rational but is tracking $1,800 in the June futures. As you can see, the rallies have been powerful and backed with solid volume.
We would expect a small pullback across the board any day this week but are looking to be buyers and add to our positions. Many will point to the news and say the move was because of the news, but we say the price action told us the news before it ever came out. If you trade the news, you lose. Price action is the only thing that matters for trading or investing.
The bottom line is simple – our algorithms are long, which is all we care about. When trading anything, emotions should not be a part of the decision-making process unless you like being on the wrong side of the market. All trading decisions should be made on a mechanical basis with no regard for news or opinions.
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