Gold and silver: ouch and reverse
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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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