Make Kitco Your Homepage

Pressure on gold reverses pattern

Commentaries & Views

Now that the FED has spoken, and all expectations were for gold to take off to the upside has ended. The sellers have taken control and overpowered the bulls. Blame it on the FED, but that doesn’t matter. The facts are the trend has changed and prices are headed lower.

The Central Banking system is nothing more than a legalized Ponzi scheme. If you are not sure of that statement, look up Ponzi, which is borrowing new money to satisfy an old debt. That is exactly what the FED and other Central Banks around the globe are doing. These actions have created pressure on metals.

We are now short gold, silver and would be short Platinum if we traded it. However, this trading position does not affect our long-term physical position. In fact, we will use what could be a much bigger sell-off where we will be short paper gold as an opportunity to add to our physical position.

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 January 31st, 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.