Gold and silver appear to be ready to rock
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver saw a solid open Sunday night, but by Monday morning, it had all the appearances of a repeat of Thursday’s price action. Equities were getting hammered and once again recovered. We saw similar action in many other markets.
After peaking at about 8:45 am EST, gold and silver headed south with volume. By noon it looked like another failure was underway; however, when the volume spiked and metals bottomed, prices suddenly saw a reversal. Gold and silver did not close at their daily highs; however, the reversal and price action were impressive.
As we start to put the bigger picture together, the action in gold and silver is bullish with the uptrend. The close above $1,900 in gold and $24 silver is a strong sign that the rally has just begun. This morning as of 5:00 EST, metals are rallying, just another positive sign. We remain long both gold and silver.
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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