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Gold and silver, the yo-yo market

Commentaries & Views

Gold and silver continue to pretend they are yo-yos as they go up and down, but never leave the range they are in. Eventually, the string will break; the metals will break out with a much bigger move. Does the string break when we are walking the dog or around the world?

Nobody knows the next move in gold and silver; it could be up or down. A trade now can go either way; we are short and will assume lower. We would not be surprised if the breakout was higher. If so, we would take our losses, reverse them, and look for a rally.

Conditions are as tough as they get, which is consistent with consolidation. In the next couple of weeks, no one can guarantee anything. We can only play the trend, which is lower until it's not. If we look years out, we expect prices to be higher. Everything comes down to your time horizon.

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 me Monday at 4:30 EST for our Monday Night Strategy Call. The link to register is below.

2022-04-11 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.