Weak jobs, weak economy and weak Gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
There is one thing that is consistent through all markets: they are all weak. The economy is weak, and the rally has been a mirage built on added money supply, trying to keep pace with inflation. The jobs number this morning was a joke.
In the meantime, gold, silver and platinum tried to rally early and failed once again. Although gold is still higher, I can see a negative close. Silver and platinum have already failed. The price action remains weak, and the support levels below will probably be tested.
Central Banks around the Globe and the FED are so far from understanding their jobs that they are using models that are 100 years old. Their attempt to gradually deflate the world currencies to cover up their flaws and ignorance will eventually work in favor of metals. However, for now, they should go lower.
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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