Gold tries to break through $1,820 but is rejected
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold, silver, and platinum had nice rallies on Tuesday. However, the critical level of $1,820 February Gold was rejected. This morning Gold is trading around $1,817; the possibility exists that it could break out today or it could fail.
As we have written for the past few weeks, we are short metals across the board; Tuesday’s rejection did nothing to change that. You must remember, we only trade the trend as assigned by our algorithm. We will remain short until at least tomorrow if gold doesn’t rally today; we will be short again tomorrow.
If you watch the news, listen to the pundits, you should be a buyer of physical gold. Although rates are climbing, nominal rates are still below zero. In all markets, everything always comes down to price and market expectations. In other words, the trend is lower until it isn’t.
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.