Monday's rally in gold should fail
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
This morning we are seeing gold, silver, and platinum rallying. Gold is up about $6.00, silver $0.20 and platinum is up $7.00. We expect these rallies to fail. Maybe not this morning or today, but over the next few days.
When trading with the trend, you want to pick your spots; we would be looking for spots to sell. Right now, we would be looking at $1,800 gold, $23.00 in silver and $1,015 in platinum. Those would be comfortable levels to add to short positions.
Remember, we are trading here; this information has nothing to do with long-term holds. The metals look weak, and the selling should continue even with a weak equity market, which has reversed lower this morning. We have an opportunity with all significant trends turning lower - be prepared.
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.