Gold, silver, and platinum remain under pressure despite Wednesday’s rally attempt. Once again, this morning the metals are testing the key support levels. Those levels remain the same 1700 gold, 1850 silver, and 800 platinum. It will be no surprise to see those levels violated and new support levels develop.

The recent action has brought out the cries of manipulation, add in the JP Morgan trial on silver spoofing and you have the back story for manipulation. Obviously, we disagree with any claim of long-term manipulation knowing that the markets are too big to manipulate for any significant period.

What we know for sure, you don’t have to buy gold or silver although we will continue to accumulate physical. If you believe that the asset class is manipulated, why are you buying? The gold and silver bulls are looking for an excuse for why the metals go lower. The simple answer is don’t buy if you don’t think the market is real.

We remain short paper gold while still purchasing physical. We must remember in markets there are investments and there are trades; the two should never meet. We will always have a bullish posture and position in physical, we will trade the paper according to our algorithm which is short.

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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2022-07-18 Monday Night Strategy Call