Gold and silver: it's the bulls turn
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The bulls have finally taken back control of Gold, Silver and Platinum. All three have now managed to reverse the trend after their prolonged downtrend. We have seen them break above the resistance levels we wrote about last week, now we look to buy the dips.
The trends are now higher, which makes us double long. We always own physical and now long the futures. No one knows how long this trend will last, but we don ’t try to time markets. We use our algorithm for all decisions. When trading, all emotions and opinions must be removed.
Everyone asks how high they can go. The answer is simple. I have no idea. We all know that they will make new highs someday, but for now, Gold must close above $1,830 December Futures, Silver $24 December Futures and Platinum $1,040 January Futures. The metals must break through those levels and then hold those levels as support.
As the manipulators take a rest, we are now long Gold, Silver and would be long Platinum if we traded it. However, I do own physical. Remember, all markets will follow the path of least resistance. For now, that is higher.
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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