Gold breaks 1900 and sells off
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Thursday, we had a nice rally in gold, silver and platinum, which took gold through $1,900, silver to $24 and platinum to $1,100. We could not have scripted a better move, including the small sell-off this morning.
Today’s lower open is an opportunity to buy; we must remember in an uptrend, we look for support levels to buy. The fact that markets failed at resistance makes these markets more powerful for the up move.
The next key levels to watch are: gold a close above $1,910; silver a close above $24 and platinum above $1,100. Based on the speed of the rise, we could see some congestion here as these markets look to take off to higher highs.
Gold has an opportunity to rally to new all-time highs while silver could see $26 and platinum $1,200. Remember, the metals are an uptrend; look for support levels to buy, don’t chase them up. There will be retracements.
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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