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Gold and silver look great

Commentaries & Views

Last week was an interesting one for the metals. The bottoms held, the trend reversed and from looking bad, they now look great. Forget about the news. The price action and charts show bullish formations. During the past 6-7 days, we have seen higher highs and higher lows, which indicate the rally should continue.

Looking back to Friday, gold and silver looked prepared for blastoff. Of course, Jerome Powell stepped into the pile and metals quickly reversed while higher on the day well off the earlier highs. One can interpret the news any way they want, but the price tells all.

As we look ahead, gold and silver appear to be ready to run higher. The next levels to watch are silver 25, gold 1820 based on December futures, platinum 1080 January futures. Those should be the next levels of resistance before pushing higher. Remember, there is no guaranty, but for now, the metals look like they will run higher.

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.

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2021-10-25 Monday Night Strategy Call Registration

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.