Gold, Silver, andPlatinum continue to trade in a malaise. All three remain stuck in a range andshow all the makings of a large move. For now, we assume that move to be up.However, we can expect eventually, either the bears or the bulls will takecharge.
Consolidation is a warbetween the bulls and the bears. Bulls buy them until the bears fight back andsell. This rotation can last for an extended period before breaking out. Lookat the Russell index, which has been consolidating for ten months.
The longer and thetighter consolidation churns, the bigger the eventual breakout will be. Allsigns point higher the price action to the economic data. Many investors willbecome impatient and make a hasty decision which tends to be wrong. Remember,markets don'tannounce themselves, and a move will just show up.
In all markets, priceaction determines what will happen in the next day, week or months. Keep thetwo strategies separate, the worst trade anyone can make is turning a tradeinto an investment hoping for a way out. Traders must learn to take theirlosses and move on to the next trade. 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.