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Gold, silver and platinum could be in trouble

Commentaries & Views

Although gold, silver and platinum have rallied on Monday and are higher this morning, they all appear to be in trouble. The trend has clearly reversed, and the next move, until proven otherwise, should be lower. 

We are not predictors of markets, nor do we make ridiculous price calls; we watch these markets for price action and trend. We watch the levels one at a time, basing all decisions after the close of business each day. We are using a math-based algorithm that takes all information, including the phases of the markets, and decides each day.

For us, the longer we are in a trade, the more we are making. Trading is about trying to capture the meat of all moves. Based on current action, $1,866 February Gold, $25.5 March Silver, and $1,080 April Platinum. These resistance levels are where we would add to our short positions. 

Special note: We mentioned that Bitcoin could be replacing Gold as an asset class, which is what Friday’s price action suggested. Although we own Cryptocurrencies, they are still a gamble and not an investment. We recognize that there are many funds popping up pushing Bitcoin, which is fine with high-risk capital. We hold much bigger physical positions in the metals and have no expectations to change that. 

Here is the recording of Options Training Session 1 – The Basics. We have also included a registration link for session 2 on Saturday January 16th at noon est. 

2021-01-09 Recording: Options Training Session 1 

2021-01-16 Options Training Session 2 Register here

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.