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Gold and silver continue to go nowhere

Commentaries & Views

Gold and silver continue to churn around the mean. The pattern is compressing, indicating a much bigger move is coming. As we look at the charts, gold’s support is at $1,900 and resistance is at $1,950. Silver is finding support at $24.5 and resistance at $26.00. We are short and expect them to hit support; however, at this point, we would not be surprised at any move.

Platinum has once again become the weak link in the precious metals chain; $ 1,000 appears to be the major support level. Although we no longer actively trade Platinum, we are physical buyers even in the current downtrend. When buying, physical levels are much less important because of the holding period.

Almost all markets are miserably slow and lack volume. This type of action always makes trading more challenging and skews the risk/reward model. When markets are dull, you are better off sitting on the sidelines waiting for trades instead of forcing them. Although I carry positions in 29 markets daily, my active trading has come to a halt. There are times it pays to be patient; this is one of them.

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.

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2022-03-28 Monday Night Strategy Call

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.