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Gold, silver manipulated, LOL

Commentaries & Views

Friday saw another horrific jobs number which is exactly what the current administration wants. They want to keep stimulus as they work towards universal basic income and socialized medicine. Gold was rallying just before the number and exploded just after to $1,781. 

By the end of the day, gold had closed lower on the day, proving the simple fact that the trend is your friend. Silver managed to hold onto small gains while platinum exploded. Overall, once again, the price action dictated the price. We remain short gold and silver expecting gold to test those flash crash lows.

As expected, the gold bugs came out with their manipulation theory which is about as ridiculous as the earth is flat. All markets take a buyer and a seller to create the trade. On Friday, buyers walked away as the bids dried up or were pulled, which happens in all markets when a big move is underway. 

Remember, if you believe that the metals prices will be higher someday, you should be thrilled that the bids dry up and you can buy cheaper. Quit whining about manipulation. If you want to buy, celebrate the lower price. 

In all markets, price action determines what will happen in the next day, week or months. 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.

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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.