New day same problem: gold and silver under pressure
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
For weeks, gold and silver have been under pressure. Even when it looks like they are going to turn around, the sellers show up. Wednesday, gold and silver were higher early in the session, only to fail at the end of the day. As we have written for weeks, sell all rallies until proven wrong.
This morning gold is lower; platinum and silver are slightly higher. Probability tells us that the sellers will show up across the board and the metals will continue to experience pressure. Some day the trend will change, and we will be talking about moves higher, but that is not today.
There will be some sharp rallies through this downtrend, but lower levels will be tested. Look for $1,720 February Gold, $890 January Platinum and $21.40 March Silver. These lower prices are an opportunity to buy physical metals, but as traders, we are sellers.
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.
Join me Friday for our Monday Night Strategy Call Recording