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Gold and silver stay short

Commentaries & Views

For the past few days, we have been watching gold and silver, expecting a possible trend change with a reversal to the long side of the markets. Thursday’s rally was not quite enough; although it was close, we are staying short.

The declining volume and lack of real interest to the upside, for now, tell us that we need more evidence that a rally can hold. The algorithm we use has many other factors besides price that trigger reversals. Price, volume, and volatility are all components.

The bottom line is our mechanical method stayed short, which is where we will stay. I can make a case for a rally but also know that the most crucial part of trading is consistency, discipline and following your methods that produce a 66%-win rate.

Trading is simple opinions are not. Follow the trend and the rules. For today we are short Gold and Silver; if the markets stay lower, we will not be reversing Monday.

On Saturday April 10th at noon EST, we will be presenting our micro mini portfolio models. If you would like to attend this free webinar you can register below.

2021-04-10 Micro Mini Portfolio Models Webinar

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.