Contributed Commentaries
Sound familiar, gold fights for 1800
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Here we are, once again, with gold fighting at the pivot point of $1,800. This battle has gone on for months, indicating months of congestion. This time around, the trend is lower, meaning that $1,800 should fail and lower prices are coming. Silver and platinum are weaker than gold.
Traders and investors continue to look for news to drive these markets, which is one of the worst things we can do. Most news items are already priced into the market. Other than a fundamental tape bomb, the news will have zero effect on what happens next.
Most market moves and trends are based on the price action surrounding them. The inverting yield curve means short-term rates are higher than the long-term rates, which are already priced in. Follow the price action and quit looking for a news item that has already been priced in.
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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