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Gold, silver and platinum consolidating

Commentaries & Views

Stop being a prophet and make profits

The metals are in a consolidation pattern, which is known as the greatest time of uncertainty. Consolidation is one of the phases that markets trade. It always precedes the next big move. In Gold and Silver, we expect the next move to be lower.

As we wrote on Monday, Gold and Silver are in downtrends. The attempt to recover from last Friday’s collapse has been weak and without conviction. This is a natural part of a trend change and should lead to a much bigger sell-off. Our first targets are April Gold $1,820 and then $1,800, March Silver $24.5 and then $23. 

We remain long Platinum, short Gold and Silver. Platinum is also consolidating with upside targets for April at $1,100 and then $1,120. Remember, markets can reverse the trend at any time. We are only trading a probability model that has a 66% edge. 

There are no guarantees in trading or investing, but if you continue to play the highest probability with money management, you can find success. If you are stubborn and fighting the trend, you will lose. Trading is strictly a probability-based model without opinions or emotion. Trade the news you lose.

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.