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Gold and silver push lower

Commentaries & Views

After the early selling this week, gold and silver attempted a rally on Thursday. They have failed to hold any bounce and they should be headed lower. Support for gold at $1,700 and silver at 18 are now in play; there appears to be no buyers.

Today is Jobs Friday which could create a temporary bounce; however, the selling pressure should not subside. A rally would be no surprise, but until the trend changes, all rallies should be sold. The metals have a chance to get ugly which will create an eventual buying opportunity.

The good news for the gold and silver bulls, we could be seeing a cycle low very soon. The best action the bulls could see is a washout with some panic selling to create a bottom.

Although the short-term trend is lower, we expect a bottom in the future. However, the rally won’t be sustainable until the bulls throw in the towel. There is interesting action in all markets; bottoms typically come from fear and panic.

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.