Gold, silver continue to struggle
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Another day, another mixed day in the metals. Gold and silver appear stuck as buyers don't have enough power to push them up, and the bears don't have enough to push them down. This is known as congestion and can last for an extended period. At the same time, platinum appears to have found a bottom.
Looking at gold this morning at 5:15 am EDT, we see higher prices. At the same time, silver is lower. Both must break above key levels, which are $1,780 December gold and $23 December silver. Until there is a close above those levels, gold and silver will be in a downtrend.
We all know that there will be a time and place when gold and silver take off to the upside. When gold was $300, people thought it would never go up, after failing in 2011, the same thoughts appeared. When silver was $5.00 it was under pressure and so on. These markets will go higher eventually; however, they are trending lower until they don't. The right side for a trader is the short side.
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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