Are the Bottoms in for Gold?
The simple answer is: we don’t know. However, based on price action Gold has a lot more room on the downside. Dead cat bounces happen in all markets all the time. Wednesday’s rally was nothing more than a bounce in a market that is still under heavy pressure.
There is no question that the bottom could have been made, but we will stay short until there is proof of a trend change. The rally we watched looked good… or was it just short covering? Haters can hate but the simple facts are Gold, Silver and Platinum are in a downtrend- it’s that simple.
Many of you want to talk about manipulation in the metals, even if that is the case, price discovery still must take place. There is no market without a buyer and a seller. Although we are short as traders, we continue to add physical metals and will continue.
Opinions, emotions and news have no bearing on markets of any kind. The price action determines the facts long before. If you let the news and other things affect you, you are being manipulated. Think about it.