Will 1800 Gold hold?
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold has broken through the $1,800 level again; will it hold and reverse to the long side? At this point, there is no real answer except the trend is lower and until that changes, it is highly unlikely. $1,800 has been like a magnet, whether long or short.
Friday’s jobs number was an upside surprise; however, it was a BS number and will be revised next month. The facts are simple: gold, silver, and platinum look awful but have managed to hold key levels of support. We should be mindful that it can change in the blink of an eye.
In the short term, it is hard to get excited about the precious metal space; the price action is lousy, as is the trade. They must prove that they can sustain a rally well past $1,800 in gold, $23.00 in silver and $1,080 in platinum. Until those events occur, the short side is the right side.
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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On Saturday, February 5, 2022, we shared our Hedging Model. You can review the recording below.