The FED sticks it to Gold traders once again, which is no surprise. There are so many flaws with the FED going back 108 years. They have proven many times to never make the correct decision when it comes to deciding on rates. However, they are proficient in taking away value from dollars.

This is common through the Central Banking System worldwide; devalue currency to cover up their bad decisions. For an organization that is supposed to be private, their actions make it hard to believe. Unfortunately, the FED is still using their original models which were flawed from the beginning.

The FOMC minutes showing higher rates and their plan going forward sent Gold into a tailspin which is continuing this morning. Silver and Platinum are joining the beatdown, as of 7:30 am EST, Gold is down 26.00 we are short, Silver down .90 we are long, and Platinum down 28.00 – in a word, ugly.

You can panic and sell out your long holdings or you can realize this short-term reaction is wrong. The destruction of fiat money can only benefit the metals over the long haul.

In all markets price action determines what will happen in the next day, week, or months. 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.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

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