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Gold and silver struggle; platinum explodes higher

Commentaries & Views

Metals continue to trade in different directions with different patterns. Gold and silver continue to struggle on what to do next. Gold is in a downtrend; just one week ago, there was a panic sell below $1,800 April futures. Gold spent the next 5 days moving higher only to fail at the $1,860 level. Based on the trend, our position, and the algorithm, we remain short gold.

Silver is like the parallel universe of gold right now. It came down to significant support while maintaining and uptrend. The next major target is $28.00 March futures. The pattern is much cleaner than gold and the trend is much clearer. Gold has been making lower highs and lower lows, while silver has done the reverse.

While gold and silver try to defend their positions, platinum has exploded, trying to chase down the major level of $1,300. $1,400 April Platinum is a real possibility and it could reach that level sooner than we think. Platinum is a little thinner and lacks the liquidity of gold, leaving room for sharp moves.

Our positions remain the same: short gold, long silver and platinum. How long these current trends will last are anyone’s guess. Trading the trend is about following the path of least resistance.

On Saturday we are going to present our Hedging Model for the next class. Below is the link to register for this free event

Learn to Hedge your Portfolio Saturday February 13th Noon EST

We have also included a registration link for session 5 on Friday February 12th at 5:00 EST

2021-02-12 Options Training Session 5 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.