Was Monday's gold and silver rallying a one day wonder?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.