News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
*** GOLD MARKET WIRE ... GOLD MARKET WIRE ***
*** GOLD MARKET WIRE ... GOLD MARKET WIRE ***
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US Producer Prices Increased by 6.6% in May... Fastest Pace in a Decade... Year-on-Year PPI Increases 5.3%
US Producer Prices Increased by 6.6% in May... Fastest Pace in a Decade... Year-on-Year PPI Increases 5.3%
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US Bans American Banks from Purchasing Russian Sovereign Debt
US Bans American Banks from Purchasing Russian Sovereign Debt
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*** GOLD MARKET WIRE ***
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Update

Metals Hold Steady As Equity Markets Fall 2%

May 11, 2021 - (Gold Market Wire) - European Stock exchanges are off by 2% this morning (NASDAQ by 2.5%) while Precious Metals are holding on to their recent gains. At noon, London time, Gold and Silver are flat on the day so far. The New York opening will be an interesting one to say the least, as a tired stock market bull looks for a place to rest. The question on everyone's mind is, if we start to unwind – will it be yet another pullback, followed by yet another rally to new highs – or a more serious wipe out? And of course the question pertinent to us – is how will the Metals fare if a serious correction develops. For now Gold and Silver are hanging on to their recent gains.

If we take our Gold chart we can see a top out developing, within a downtrending channel - but this is at a minor level.

...signalling a short-term top?

And in Silver, which has been outperforming for the past several weeks, we can see a similar (minor) development, albeit within an up trending formation.

...also signalling?

If nothing else, it shows you that Silver is maintaining the 'alpha' stance. That should be remembered, going forward, for those seeking a little more action. As far as the trading book goes, we're still about $1.00 in the money, and in an up move on a daily basis, so, we will take our 1/3 off in Silver now, and seek to reload at a lower level. More importantly, we must keep our eyes peeled for a serious equity pullback, which still has the potential to drag the Metals lower. Taking 1/3 off now may seem a conservative act, but we actually like these set-ups. We pocket money and scale down, and are aware to the fact that we've taken a solid 5% (before leverage) out of the market, twice, in less than a month. That is music to our ears - but we know of so many who would sneer at taking such "small" gains. Interestingly, they are the ones who never seem to last in the trading arena over the years. If realizing 10%, before added leverage, in under a month is 'pithy' to some - so be it. We doubt their long-term trading prowess. Trading is about making money and pocketing it - and not about swinging for the fences. The GMW crowd has been at this since the 1980s, and we are comfortable with our approach.

To each his own.

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