Gold and silver hover around key support
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Gold and silver had another rough day on Tuesday; both attempted to rally, only to fail again. Gold and silver closed below key technical support; both have rallied back to those levels this morning. The key level to watch for gold is $1,850 and silver $22. Those levels are like pivot points. If they stay below, the selling will accelerate.
Many continue to want and trade from fundamentals, which in the trading world are worthless. Fundamentals only play on an investment where they determine on holding a trade. The fundamentals in precious metals are always good, but the price action is not.
We must remember that technical analysis is the key for short-term direction. This is where too many fail; they confuse the issues and want to apply their opinion to a trade or investment. Let the map of the market guide your trading. The price is always right.
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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