Gold and silver rest, before the next move higher
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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.