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Gold and silver struggle, support levels next

Commentaries & Views

Gold and silver look to test the support levels once again. Wednesday saw a nice rally; however, there was no volume to support it. All signs point to lower prices once again and our levels of 1900 Gold and 24.5 Silver are in play.

There is a new level of support being built at $1,925 gold and $24.9 silver, the key here will they hold? The biggest concern is the lack of interest, no volume, and bad policies. As traders, it’s difficult to carry too big of a position in this environment: too many questions.

We remain short, looking for lower prices and the action that comes from the support levels. In this environment, it is hard to commit too much risk. Thin markets are dangerous and can be pushed hard in either direction with less money than when there is normal trade. Caution is the best trade until volume returns.

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.

Join us Saturday, April 2; I will be hosting our Day Traders Dream webinar. The link to register is below.

2022-04-02 Day Trader’s Dream 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.