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Gold and silver: ouch and reverse

Commentaries & Views

The pounding in gold, silver and platinum continued Thursday, creating a reversal to the short side for gold and silver. The action was fast, furious, and Ugly. There were few rally attempts in metals, which is a bigger concern.

We have now reversed gold and silver into this rally this morning. The signals have switched, now joining platinum as shorts. Platinum, we do not trade due to a lack of liquidity. $1,800-$1,820 August Gold is our first resistance point and our first target down is $1,750. Silver’s resistance is $26.8-$27 September and first support is $25.5.

As I have written before, although I am now short the futures for gold and silver, I maintain my long investments in physical. We are believers in metals over time, as is the short time frame we will be short.
Trading and investing are two different investments.

Many have commented on the metals markets as being rigged, fixed, or manipulated. The possibility exists that all those things can be true; however, it does not matter; price action still rules the day and no matter what, there must be a buyer and seller. Price discovery takes place in all markets, no matter what.

Patience, discipline, and money management always win the day.

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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.