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Gold under pressure in front of the FED meeting

Commentaries & Views

Tuesday, gold continued pushing through the $1,840 level, trading as high as $1,854. Support for gold becomes $1,740, which is a level to add on to long positions. This morning’s sell-off is natural and healthy for a continued rally.

Silver has fallen three days in a row and is lower this morning, which could become the fourth. However, the selling has been small and on light volume. $23.50 is the key support level and our expectations for a bounce is near and a run to $26 is in play.

Platinum looks almost identical to silver, except that it has reached support and appears to be headed back towards $1,100. We are watching all three metals that are all long but at different points in their cycle. We are long across the board and are looking for a much bigger rally, which could be triggered today with the FED meeting.

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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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.