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Jobs Friday, what will gold and silver do?

Commentaries & Views

Here we go again; we will have another major announcement that can have a dramatic effect on precious metals. Today we have the monthly jobs report, a suspect number, but it can drive markets. gold and silver’s failures at key levels indicate weakness, the price action is weak, and the miners have gotten hammered.

The monthly jobs number is a joke and should have no meaning to anyone or anything. Since the government reports from the U-3, it does not give an accurate reading on jobs, not counting those who have fallen off the roll, which can be found on the U-6.

However, with all the nonsense that goes on, the metals will react along with currencies, interest rate products and the indices. At 8:30 ET, the jobs will be reported and are sure to create some action; rallies should be sold.

Gold, silver and platinum are weak despite the recent rally attempt. Thursday, after being much stronger, piercing the $1,900 level, silver at almost $23.50, they fell apart, closing near their lows. We are short and willing to sell more at resistance.

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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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.