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Gold and silver should rest and consolidate

Commentaries & Views

Gold, silver and platinum have had terrific up moves over the past couple of weeks. The parabolic moves on Tuesday should lead to a consolidation and rest period for the next few days, especially if the uptrend is to continue.

From a technical standpoint, the last few days has traveled too far away from the mean. Typically, this type of action leads to a small selloff or a congestion period. The patterns look strong and should lead to new highs in gold, $30 in silver and $1,250 platinum, if not higher.

The most bullish price action from here would be a pullback to support giving us another buying opportunity. Between the fears in the world, plus the geopolitical issues and the underlying strength, we see only higher prices on the horizon. Follow the price action and look to be a buyer on pullbacks to support.

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.