The battle continues for Gold 1800
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The battle is on between the bulls and bears for the next big move in gold, silver and platinum. The markets move just enough higher before sellers to show up and force out the weak hands. When they reverse, they move down enough to shake out the weak hands once again. This continues to repeat until either the bulls or bears take control.
Our current position is short and we assume, for now, the sellers will win the battle. Of course, there are no guarantees for what the markets will do next. We can only play the direction of the highest probability, which is lower in gold, silver, and platinum.
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.
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