Gold and silver going lower
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver are following the children's song, "The Wheels on the Bus." Prices going round and round describes the current pattern in markets. For months we have been trying to write about these markets and their current trends. Look at the charts and you will see that gold has gone nowhere while silver has worked lower.
This pattern sets up the possibility for a huge meltdown in the next couple of months. People keep giving me reasons why gold and silver should go higher; however, they have not. When everything points in one direction; yet, the asset itself goes the other, it is usually a sign that there are issues underneath the surface.
Our mantra remains: when you trade the news, you lose, which is playing out in markets as scripted. In other words, news is worthless and a guaranteed loser for those that follow it. Price action suggests that there could be heavy selling in gold and silver. Platinum has already started the meltdown.
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.