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Was Monday's gold and silver rallying a one day wonder?

Commentaries & Views

After Monday’s price action, gold and silver traders had a lot to be excited about. There was a big rally, taking both to new recent highs, heavy volume, and what looked like a real rally. What we ended up with was a disappointment.

Tuesday, we were back in the doldrums and under pressure giving back about half of Monday’s gains, leaving gold and silver investors feeling disappointed and what would happen next. Should we be worried?

Today gold and silver continue to vacillate near the unchanged level moving on both sides of unchanged. This type of action always drives traders nuts and usually creates bad decision-making due to impatience.

If we evaluate the big picture, gold and silver are in uptrends, signaling they should move higher. We know there is never a guarantee as to what will happen next, but we also know that we can’t force the market to move at the speed we want. Until something changes, we are long and will buy the dips.

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.