Make Kitco Your Homepage

Gold and silver create a challenge

Commentaries & Views

As summer ends, the challenge of trading markets has been as tough as it gets. Volume and market action have been nonexistent. From equities to bonds, crude to soft commodities, there is little action. Gold, silver, and platinum are seeing the worst of it.

We have identified the trends in metals; the action is weak; gold is in an uptrend and continues to drift in circles. Silver is doing the same, but it is in a downtrend. The markets are in never-never land and appear to be stuck without any sign of escaping.

We know that this miserable pattern will eventually end. We also can assume that the long-term perspective of metals is higher. However, the short-term perspective and opinions can cause more grief than profits. There are many reasons to believe gold, silver, and platinum should be going higher, but they aren’t. The question is why, the answer is markets discover price, think about it!

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.

On Saturday, Sept. 4, I shared a webinar on Hedging, Futures and Day Trading. The recording is below

2021-09-04 Recording: 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.