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Gold and silver rest, before the next move higher

Commentaries & Views

Gold and silver are on their way higher, although they appear to be taking a rest today. Last night's State of the Union was a nonevent for metals, except the administration's agenda appears to be very bullish for gold and silver.

We are looking for much higher prices, especially if you look at other commodities. The struggles and compression that metals have been languishing in should lead to a monster breakout. The trends are higher.

Fed Chair Powell speaks today and has been given an excuse not to hike rates while inflation is soaring. The country and the world are a big mess; the probability of needing precious metals as a currency continues to increase, which adds more to the expected move higher.

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.

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.