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Gold, silver and platinum headed lower

Commentaries & Views

The metals remain about as ugly as it gets, the patterns are weak and there is no volume. This morning we have reversed gold to the short side, joining silver that we trade and platinum, which we don’t (due to lack of liquidity. Gold continues to rotate around the mean and has traded low enough to reverse.

The real problem in all markets is the lack of volume, volatility, and real liquidity. The action itself is no surprise considering market conditions and Yom Kippur on Wednesday and Thursday. Equity markets tend to drift higher during dull markets, while commodities tend to drift lower. The patterns we are in now are known as the dull drift.

The recent action suggests that Gold and Silver are in danger of testing or trading through the recent flash crash lows. Platinum has already violated those levels; gold and silver are in positions to threaten those levels. The slow conditions are the only thing that can save the metals markets now. There is a lack of conviction in either direction. Any acceleration from here should be lower.

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.

Here is the Recording of our Monday Night Strategy Call.

2021-09-13 Monday Night Strategy Call recording

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.