Gold above key resistance
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold is breaking through the key resistance of $1,800 as the churn continues. The $1,800 level has been like a magnet, when its below, it comes back as it does when it is above. It has become clear that the pivot is $1,800, we are short and will not change our position until the trend changes.
We must remember that the trend is the key component when trading. The trend remains down, we don’t reverse positions until there is a change in the trend based on the closing price. During the trading day the action is just noise. Too many get fooled on intraday moves, we work and reverse on closing numbers only.
Silver and platinum are headed in opposite directions compared to gold; the trend is lower in all. However, silver is still below its key resistance and platinum above support. No matter the news the price action tells us what to do next. Don’t get caught up with news and noise, you will lose if you do.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper knowing that we can trade either side without emotions.
In all markets price action determines what will happen in the next day, week, or months. 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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