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Pressure mounts on Gold bears

Commentaries & Views

As you regular readers know, we have been short gold and silver for quite a while now. The pressure mounts as the metals try and breakout to the upside. What we are seeing in the price action is not enough of a rally to reverse, but it appears the sellers have dried up.

As a trader, we go through painful periods knowing they will eventually be on the right side of the trade. Our concerns being short are real, but the trend remains down, for now, keeping us short. Nobody said that trading was easy.

Looking at the current action in Gold, Silver, and Platinum, we can see that we are very close to reversing. There are many signs that the bear trend is over; only one thing remains to change, which is our algorithm. There are times when trend trading can be painful.

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, February 5th, 2022, we shared our Hedging Model. You can review the recording below.

2022-02-05 Recording: 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.