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Gold battleground 1800

Commentaries & Views

It’s a new day, but the same lousy action for gold, silver, and platinum. The three are going nowhere; every rally is met with sellers and every selloff is met with buyers; hence they all churn around the mean.

Consolidation trading is tedious and painful. We see many false starts in both directions making trend trading challenging. What this type of price action really means is simple: there is a much bigger move coming — when and direction to be determined.

Our current positions are short paper gold and silver, which suggests the big move will be lower. However, if or when we get long, I will defer to the long side. Obviously, I favor a move that is in the direction of my position.

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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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.