Make Kitco Your Homepage

FED ignorance crushes gold

Commentaries & Views

Of course, we know that the Federal Reserve has never done the right thing in its 108-year history. Wednesday proved to be nothing different; they had a chance to grab control and decided on basically the status quo.

We know they refuse to update their antiquated models, have become much more political and are light years away from their original mandate. The FED and other central banks around the globe continue to destroy currencies.

Wednesday, gold, silver and platinum got hammered on the news that the FED was basically doing nothing. The selling continues this morning and now threatens to reverse the trends in gold, silver and platinum.

The bad news is only in the short term and should eventually be very bullish for metals. Over the next few days or weeks, this could get ugly and create troubles for short-term investors. As of now, we remain long paper and physical.

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 Monday, Jan. 31, 2022, Join our Monday Night Strategy Call at 4:30 EST.

2022-01-31 Monday Night Strategy Call

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.