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Can the gold and silver rallies continue?

Commentaries & Views

Gold and silver have finally broken above resistance and are now in an uptrend; can it continue? That is always the key question when trend trading: will the metals follow through? Will they stay in wide sweeping consolidation?

No one knows the answer 100%. Based on the build-up and breakout, we would expect the rally to continue. We have reversed our positions this morning into this small selloff, which was expected. Markets never go straight up or straight down without some mean reversion.

The biggest question with the metals is: Will the Good Friday holiday have any effect on the trading action? Volume has been pathetic, which makes aggressive trading a fool’s game. This has been an issue in all markets, which leads us to believe we could see a significant run here.

Commodities have been exploding along with inflation. Geopolitical issues, along with a fraudulent fiat currency system worldwide, could be enough. However, we must remember that everyone, knows about this news. Will the buyers have the power to keep pushing?

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.

2022-04-18 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.