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News is noise; gold sits at 1800

Commentaries & Views

Wednesday has been loaded with news events; OPEC agreed to increase its production, but crude spiked $1.50. ADP Jobs Number was a huge miss and equities stayed up. Gold and silver stayed marginally higher. Basically, they are hovering at their key levels.

High inflation, supply chain issues and the possibility of stagflation. Nothing matters except the price of the asset. In our case, gold, silver and platinum all continue to struggle around their key levels. Eventually, they will move, but not until it shows up in the price action.

News is noise and those who try and trade off it will lose. We are short and will stay there until prices tells us otherwise. Markets can’t be clearer: they are stuck in a tight range with the current bias lower. That can change at any time and we will be ready. Until then, we remain short.

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 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 Saturday, Feb. 5, 2022, at Noon EST, we will be hosting our webinar on Hedging your equity portfolio. If you would like to learn how to protect your assets, Register below.

2022-02-05 Hedge when you can

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.