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Gold, silver, and platinum in trouble

Commentaries & Views

Once again, Tuesday gold, silver and platinum demonstrated that trouble lies ahead for the precious metals. They were trying to rally and failed miserably. The price action suggests that the metals are headed lower.

Market failures happen regularly; they are then defined by what degree of weakness they are showing. Gold and silver's failures over the past few days suggest a much bigger sell-off. Until further notice, we will aggressively sell rallies that reach resistance levels.

Looking at the price levels, the levels are as follows: gold's resistance is at $1,920 and the next big support is at $1,850, silver resistance is $24.00 with support at $23.00 and Platinum resistance is $950 with support at $890. We remain short and are aggressive sellers until this pattern changes

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, May 2nd at 4:30 EST for our Monday Night Strategy Call. The link to register is below.

2022-05-02 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.