Make Kitco Your Homepage

Gold and silver struggle to reverse trend

Commentaries & Views

Gold and silver failed to break out to new levels, keeping both in a downtrend. The footprints left by the price action are clear; gold and silver have a higher probability of going lower. There is no logical reason to be long the metals until the trend has turned.

When you are trading, you only care about the time frame you are trading. You must keep emotions and opinions out. All markets move based on price and the map left behind; it’s that simple.

Losses are established on entry of a trade, which is correlated to the time frame you are trading. Gold and silver trade like every other market, going higher, lower and trends. Eventually, gold, silver and platinum will be higher. But until proven otherwise, the trend is down.

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.

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.