FED ignorance crushes gold
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.
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