Gold struggles at 1840, silver is on the move
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
For the past few days, equity markets have been getting hammered; the trend has reversed to lower. At the same time, gold, silver, and platinum have had solid rallies. All three have made highs not seen since November.
The trend in metals is higher for many reasons, the biggest being the price action. Many will point to the inflationary spike or geopolitical issues, among other economic issues. We will say we are long because the price action indicated a trend change. Traders can make this as complicated or simple as they like. For now, they go higher.
Thursday showed the first sign of possible weakness in gold, failing to hold above the 1840 level. So far, only Tuesday has been able to close above this key level. Some will get nervous and look to close longs or get short gold; we see it as natural price action and a buying opportunity at 1830.
The choice is yours, fall into the trap of the news and minutia of others, or follow the price action and the trend. If you remember the most important issue in trading and investing: trade the news you lose.
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.
On Saturday, Jan. 22, at Noon EST, I will be hosting a webinar on Day Trader’s Dream. It is free to attend. You can register below.