Although we reversed our Gold position on Tuesday and are now long Gold it is no real surprise that there is a small sell off this morning. Gold had rallied from 1770 to 1870 based on the February futures. Our signal turned long at 1860 area, a pullback here is a buying opportunity. We typically experience small losses after we reverse trades.
Silver remains short and with yesterday’s small sell off and the continuation this morning. The key level to watch in is 24.00 March futures. On the close, Monday Silver was close to reversing but did not. Until there is a reversal signal, we will remain short.
Platinum has been under pressure this week. The action looked more like the unwinding of Gold/Platinum spreads appeared to be the culprit. In any case, we are long Platinum and will stay there until we get a reversal signal. Like all commodities we trade, we use the same algorithm to reverse.
As I have stated many times before, trading is not investing and I still own and continue to buy physical metals. In fact, I had a delivery on Monday of Gold Silver and Platinum. We must always remember that trading is short term and investing is for the long haul.