Does news effect gold, silver, and platinum?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As much as many would love to blame the banks, manipulation of the Central Banks, the news, and other forms of manipulation for gold's price action, they would be wrong. Too many traders look for excuses to describe the price action and continue to ignore the simple fact that no trade can be completed without a buyer and a seller.
Of course, therefore, so many fail trying to trade and invest in all markets. Yes, the FED has propped up equities with its ridiculous policies since 2008. However, this is not their first rodeo or attempt to manipulate markets which have failed every time in history.
News is worthless because it is already priced into the markets by the time it hits the tape. Gold, silver and platinum are no different; they are driven by price action and price discovery. If the manipulators are sellers, who are the buyers? If the metals are manipulated, why are there participants on the other side?
Cry manipulation if you want, but all markets are about price. Over history, most markets have had a steady rise through all the stories that are told. Trade the price action, the probabilities and quit looking for the boogie man
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.