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Did last week's action change the trend in gold?

Commentaries & Views

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.

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.