Contributed Commentaries
And they're off; gold trying to break 1900
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As gold pushes higher, it has stayed on script, trading as expected. Tuesday’s pullback was met with buyers and this morning, gold is trying to break through the key level of $1900. Whether or not gold breaks through $1,900 today is not a big deal; ultimately, the buyers are back.
When watching markets, you could have seen this move coming, and it has nothing to do with the news; it started on a short squeeze fear-based rally. What makes markets interesting is that what started a new trend is not important. It’s the strength in a rally or the weakness in a break.
Conspiracy theorists and those who continue to scream manipulation are again proved wrong. Markets go through the price discovery process no matter the market. There must always be a buyer and a seller. It is interesting when equities break down, the high-frequency traders are blamed and when metals break its manipulation.
Until further notice, we are long gold, silver and platinum. We expect a much bigger mover to the upside with the next important level -- a solid close above $1,900 Gold.
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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