Did last week's action change the trend in gold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Many gold bugs continue to try and call the bottom for the yellow metal. Last week’s action was just what the doctor ordered for gold, or was it? Obviously, there is no simple answer; however, looking at the price action in gold, silver and platinum, there is no reason to believe the trade was anything more than a dead cat bounce.
Trading is never easy; all we can do is play the highest probability of success. The path of least resistance in metals remains down especially considering the weak rally attempts we have been witnessing. Those that use hope and opinion as a strategy always end up on the wrong side of markets.
The ability to separate emotion and opinion from facts is the true secret to long-term success. There are no guarantees in the world of trading; however, money management and discipline to stay on a path with patience will increase the probabilities, which is the true secret of success.
Let the markets and their price action dictate the terms in which you trade. Investors should stay the course, knowing that over the long haul, prices will rise. However, the next day, week or month no one knows what to expect. Stay on the path, take the losses when they come and be willing to reverse to either side when the time is right.