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Gold blows through 2000

Commentaries & Views

Gold, silver and platinum continue to run higher; gold blew through $2,000 and is $2,020 as of 2:30 am EST. It was a surprise that gold didn’t pause at $2000; however, from here, we expect a pause or minor pullback. The speed at which gold moved is too fast and parabolic.

On Monday, silver struggled but has regained its strength overnight and is trading at $26.50 on its way to $30. Unlike gold, silver’s rally has been steady, hugging the trendline on the way up. We expect the rally in silver to continue without too much trouble.

The best performer from a technical view is platinum which has traded as written in textbooks. However, platinum is the weakest in price and distance from the highs. Platinum should reach $1,400 on this move up.

Commodity markets have been exploding, especially wheat, crude, and metals. With equities starting to fail, this will add more power to the commodity markets with money looking for a place to go.

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.

On Wednesday, I will be presenting a webinar on Options in partnership with Tradier Brokerage and the CBOE. The link to register is below.

2022-03-09 Trading Options Webinar

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.