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Gold hits resistance and falls hard

Commentaries & Views

This morning, around 4:00, gold hit the top end of the range near $1,860 April futures and quickly reversed, dropping almost $30.00 in 30minutes. This action was classic for a market that is in a downtrend. Until the trend reverses, we are sellers of resistance.

Silver's action was similar to gold but not quite as dramatic. The trend in Silver remains down and should be traded the same way. Platinum has held major support continuing its uptrend and overwhelming strength over Gold and Silver for now.

One of the best things about trading mechanically with our proprietary email you are always prepared and seldom surprised. Trading becomes a matter of fact without emotions. We are not always right, but consistency without emotion is still the best way to trade.

Those who focus on politics or react to the news are soon out of business. Remember, all markets have expectations based on the news before anyone ever hears or sees it. When you read or see a news announcement, it has already been priced into the price most of the time.

Here is the recording of Options Training Session 2 – The Next Step. We have also included a registration link for session 3 on Saturday Jan. 23 at noon est.

2021-01-16 Recording: Options Training Session 2

2021-01-16 Options Training Session 3 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.