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Gold, silver and platinum await Friday's Jobs Number

Commentaries & Views

As the summer winds down and we approach the Labor Day Holiday, gold, silver and platinum are very quiet. This is the standard for late-August, early-September trade. The only news item that can change this is Friday’s Jobs Report. No matter the number, we don’t have much expectation of any major change until mid-September.

Yesterday we mentioned the quiet trade, which has slowed all markets to a crawl. When this type of action occurs in markets, equities tend to rise while metals drift. Market expectations are the story that drives markets. Other than a crisis that can’t be accounted for, nothing should move too far from the mean.

We are long December gold, short December silver with no position in platinum due to lack of liquidity. We don’t expect the current patterns to change before the holiday weekend and recommend traders take off until after. The current market conditions are too tough to trade.

We don’t predict, create need, or fear but report the facts of what we are doing and willing to do. Buying physical metals is never a bad idea as long as you don’t confuse the purchase as a short-term play. Physical metals are for holding; paper metals are for trading.

In all markets, price action determines what will happen in the next day, week, or month. Keep the two strategies separate. The worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.

Patience, discipline, and money management always win the day. Let the map of the markets show you the way.

Join me Saturday September 4th at Noon EDT as I share, Hedging, Futures and Day Trading

2021-09-04 Webinar: Hedging, Futures and Day Trading

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.