Although Gold, Silver and Platinum have rallied on Monday and are higher this morning, they all appear to be in trouble. The trend has clearly reversed and the next move, until proven otherwise, should be lower.
We are not predictors of markets nor do we make ridiculous price calls, we watch these markets for price action and trend. We watch the levels one at a time basing all decisions after the close of business each day. We are using a math-based algorithm which takes all information including the phases of the markets and decides each day.
For us, the longer we are in a trade the more we are making, trading is about trying to capture the meat of all moves. Based on current action 1866 February Gold, 25.5 March Silver and 1080 April Platinum. These resistance levels are where we would add to our short positions.
Special note: We mentioned that Bitcoin could be replacing Gold as an asset class which is what Friday’s price action suggested. Although we own Cryptocurrencies, they are still a gamble and not an investment. We recognize that there are many funds popping up pushing Bitcoin which is fine with high-risk capital. We hold much bigger physical positions in the metals and have no expectations to change that.