News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Update

Precious Metals Prices Grind to a Halt

June 16, 2021 - (Gold Market Wire) - The Precious Metals market has seen volatility collapse as weeks of range trading do their damage to both the options market and retail interest. Our infamous Silver "Box" remains unchanged, but our spec long for a scalp has worked out and we are encouraged to try it again... from the long side only. So, if we start drifting towards $27.45, we will take another small long, with a view to trading out for a small profit on any move up. It's no more than a scalp (or a "job" as the British call it.) If we start trading below $27.30, the discipline maintains that we cut immediately.

The market has almost nothing to offer than scalping, and it is presently paying off only to those with the mind to do so and those who are short the $27.50 and/or the $28.00 options strikes. They are the winners in this environment - and proof that taking a butterfly position in the options book, i.e. short at-the-money and long the wings, is the way to manage it.

On the flat price front, there is little to add, except the positive indication that the slow stochastic looks ready to turn down again, which should help us work off this period of low volatility and prepare us for a move upwards.

...stochastic looks ready to turn down again.

Right now its all a grind, but its what we have to work with. Patience is the order of the day. A scalp for some pocket change is all we can do.

Looking at the trend, there are few surprises:

...overhead resistance persists.

We have the downtrend, which is our first order of business, and is roughly in line with the upper band of our "Box". The market is drifting, and we note how May 17, really set out the parameters for that early on. That day's high/low set the tone, and it really hasn't changed since.

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