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Gold and silver reach resistance

Commentaries & Views

Gold and silver had a nice bounce from support on Wednesday and now are pushing resistance. What will happen form here? The highest probability is that resistance holds, and gold will be headed back to 1800, Silver 21.

Obviously, there are no guarantees of failure. However, using the current footprint that the metals are leaving, the probabilities are high for failure. The price action has been weak, buying has been light and the strong hands are still the sellers.

Gold and silver are not a hedge against your equity portfolio; they are hard asset commodities that everyone should have in their portfolio. At best, gold and silver are a hedge against the fraudulent fiat currency system. However, the trend is lower and we will sell until that 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.

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2022-05-23 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.