Gold and silver showing more signs of weakness
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver are both slightly higher overnight but continue to show signs of weakness. With each rally attempt, gold and silver show a lot of room on the downside. Our first resistance in gold was $1,750 April Futures, but it appears $1,730 is the level to watch. Silver has solid resistance at $26.00 May futures.
The trends remain lower in gold, silver and platinum; we are short gold and silver but no longer trade platinum because of the lack of liquidity. In other words, if we were still trading platinum, we would be short. Trends are based on the price action that plays out in the charts and never announce themselves.
When trading, we are mechanical traders based on our proprietary algorithm, which does not get involved in the intraday action and is purely based on the closing prices. In other words, emotion and news free; every decision is purely based on price.
Once again, I remind you, trading is not investing. I have no issue buying physical metals at any time with the intention of holding for an extended period. Personally, I will continue to accumulate physical metals while trading on either side of the market based on the algorithm. Never confuse trading and investing. They have no relationship whatsoever.
On Saturday, March 20, I will be presenting our part-time day-trading class using futures. It is free to attend as I share ways to be a part-time day trader.