Gold, silver and platinum higher in volatile markets
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold, silver and platinum have seen a volatile start to the week, opening lower Sunday night. But they are now working higher. With the election tomorrow, market conditions promise to be explosive. As the winds blow on the politicians, market will move quickly in both directions.
The exchanges and brokerage firms have been hiking margins for the past couple of weeks. They are making special margin arrangements for the next couple of days, which will push many day traders out of the markets. The increased margins may also cause some forced liquidations creating even more volatility.
However, the metals remain in a downtrend. Volatile markets do not change the overall trend. We will stay short gold, silver and platinum until the trend changes. Do not get yourself trapped, trying to guess the election results or where the bottoms are. Only price action can change the trend and until then, do not fight the tape.
Remember, if you are not willing to be short gold, silver and platinum, do not guess the bottom. Be patient and wait for the trend to change to bullish. Some of the best trades that are made are the ones that don’t happen.
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Saturday November 7th at Noon EDT