Gold’s Search for a Bottom
The Gold bugs continue to call ‘fix and manipulation’ because Gold and Silver continue to get hammered. Out of all asset classes in the world the metals cause the most emotional swings. For some reason they believe the metals can or should never go down.
We all must remember that all markets are the same and that all patterns repeat themselves repeatedly in all time frames. No market is immune to monster rallies or sell offs, it is a fact of life. Trends exist across all markets – Gold and Silver are no different. Their values are determined by price discovery manipulated or not, a buyer and seller still must meet.
After Tuesday’s action, Gold looks much closer to bottoming. We won’t predict a bottom; we are short and will stay there until the pattern changes. However, there was some price action that suggests the bottom is close or a much bigger sell off is coming.
Like all markets, we will stay with our current position until the pattern and the price action tell us differently. Keep your emotions in check and opinions out if you really want to make money trading markets.