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Gold and silver continue to torture traders

Commentaries & Views

Many times, we have written about the pattern of consolidation, which is also known as the greatest time of uncertainty. No markets have been more uncertain than Gold and Silver for the past few months. Consolidation will bring a new trend; the only question is when.

We know that a much bigger trend is coming. The price action over the past year in gold and silver was one of the narrowest ranges in years. All this means is that a huge move is coming, but until it does, it will be choppy trade and quick reversals in either direction.

We are long now; based on the algorithm, we will assume the market's breakout to the upside. However, there are no guarantees that this rally or uptrend won't fail. The only positive sign is the wider daily ranges. The more volatility in markets, the higher the probability of a big move.

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.