Gold, silver and platinum hold support
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold, silver and platinum held support on Thursday, showing that they are not going straight down. However, the facts are simple: the metals are weak and have a great potential to break hard to the downside. There is no doubt that there are reasons to own gold. However, price action always tells a story. The action suggests markets have priced everything in and the big rally that we have seen is over.
This morning we have the monthly jobs report, which who knows if it will meet or beat expectations. Based on price action, in all markets, there is pressure on this number to be good. It appears that the general market trends are joining metals with downward momentum. Obviously, we haven't seen the final score, but everything is starting to weaken.
The bottom line is: gold, silver and platinum are in downtrends. They did hold support on Thursday and are in a consolidation phase; based on our proprietary algorithms, the next big move is down. We do not make predictions; we trade the price action, which can change at any time. But until it does, we will be short and looking to sell more. If the pattern changes, we will become buyers.
As a reminder, trading and investing are two separate investments, trading is short-term and based on daily market closes. Investing is based on long-term holding to gain appreciation over time without trying to time market moves.
Ultimate Hedging of your Portfolio: Saturday August 5th at Noon EDT, you will see how to save yourself and portfolio by protecting using our model. The webinar is free with no obligations.