Gold stays on the bridge to nowhere
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Just when it looked like gold was ready to take off, the sellers came running back in. On Thursday, gold was charging higher only to get pushed down again, closing near the lows of the day. It appears that gold is headed for 1800, which is major support.
On the other hand, silver is crumbling to lows not seen in a couple of years. Platinum is a total disaster and can’t seem to get above 1000.00. There are many reasons that precious metals are selling off, inflation, high interest rates and other things.
When will the selling end? There is no answer to that question, or it will end when it ends. The charts look bad and show no signs of improving anytime soon. That does not mean the precious metals won’t turn around; however, until the price action changes, expect the drift lower to continue.
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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