Gold rally creates another selling opportunity
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
This morning the metals are moving higher, which was expected after Friday's ugly selloff. These rallies in bear markets are meant to be sold. In other words, we are looking for a level in gold to add to our already short position.
Friday's selloff expanded past gold and was big enough to create a sell signal in silver, which we have shorted overnight. Resistance levels to watch in Gold 1760 April futures and 27.50 May Silver futures. There is one small difference between gold and silver; gold's downtrend has been confirmed over a long period, silver's is just beginning.
Platinum remains the bright spot in metals which has been the case for months. For now, we are short gold looking for a level to add on, short silver but will wait for more confirmation to add and long Platinum.
Let me remind everyone that trading a product and investing are separate, having no relationship in any way. We expect to see much higher prices in metals in the future but can't identify when; today, we see reasons to short. We don't trade long-term investments. Too many confuse one with the other, always a big mistake.
On Saturday May 6 at Noon EST, Andy Hecht and I will host a webinar on our newest addition to our Technomental Commodity Report. Please join us and register below