Stop being a prophet and make profits
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Monday saw Gold, Silver and Platinum trade higher, but the rallies were not powerful nor exciting. We expected a rally but thought they might be stronger, which is consistent with a dead cat bounce. The rallies were weak and lacked any conviction.
We are already short Gold and Silver, and the weak rallies give us reason to believe they are going much lower. That does not mean they will get trashed today; only the outlook suggests lower prices. As of this writing, Gold, Silver and Platinum are slightly higher.
The same levels we wrote about on Monday apply. Gold’s support should is $1,750 based on August futures. A breakdown below $1,750 brings $1,725 into play. Silver’s support is $25.5 based on September Futures. A violation of $25.5 brings $25 into play.
Remember, we are not prophets and are basing everything on the current price action and the trend. This has nothing to do with long-term physical investors. These are trades that can last days, weeks, or months.
Patience, discipline, and money management always win the day.
Recording from our Monday Night Strategy Call with Andy Hecht below.