Contributed Commentaries
No surprises for gold and silver
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
On Thursday, we wrote that gold, silver and platinum should do some churning at these levels. That is exactly how they performed, whipping around before closing near the unchanged level.
Expect this type of price action for the next few days at least. In other words, we will see volatility with big swings only to close around the unchanged level. It would be surprising if there was a huge move from these levels. However, we don’t predict; we watch the price action.
Remember, we are long gold and silver looking for higher highs. At the same time, we understand that the best price action we could see at these levels would be consolidation while they build underlying strength.
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 Saturday, I will be doing a Q+A on all products and all markets. You can email me questions ahead of time. This is a free webinar Saturday, March Noon EST.
Join us Monday, March 14, for the Monday Night Strategy Call. The link to register is below
