What Happens To Gold And Silver Next? Look Out Below?

Hey guys, isn't tomorrow going to be a big moving day one way or another since Janet Yellen is speaking at the Jackson Hole conference?

If she doesn't raise interest rates, which I don't see how she could, silver should do well. Thoughts?

The way I approach Fed meetings and another events is-

I do nothing at all, I dont think about anything. The most important thing I do is before these meetings I always have a watch list of set ups and then I just watch the markets reaction.

I really have no clue what she does and personally really dont care. Perhaps she says no new rate hikes coming and then silver, gold flop despite that, as an example. I mean I have seen it all and it really is a waste of time on my part to try and guess what happens.

Clearly gold and silver are rising for whatever reason it is. Perhaps it is because of a low rate environment. MAybe it is because its PMs are becoming more scare. Maybe investors want some more secure... I have no clue. When it comes to commodities, all I know is that the simplest law applies to them: supply and demand and right now, there is a lot of demand for gold and silver that they are in uptrends.

OR perhaps its just a rotation in place, a move to hard assets. Take note that many other commodities are doing well this year, platinum, cotton, sugar, coffee and other ones.

I'll be glad when the meeting is over. Any Fed meeting is a big fat zero to traders unless they are trading the news, on a short time frame. Mostly, Fed meetings make the market environment leading up to them either feel like watching paint dry or stirs up volatility. Oh well at least the intra-day traders can make good money lol

Just a reminder to everyone- Its not WHAT the Fed says today that matters, only the REACTION to what is said by the Fed.

Therefore, wait until the end of the day to see what is really going on. Simple

gold,, another test here for the 1319s? we are re-testing yesterdays lows...

remember if that breaks on gold, down it goes...

The numbers to watch for this week-

Silver- In the previous week, fell out of the range, which the low end was 19.60s. It found some support but we cannot rule out that more lower is coming. For now, watch and see if the Friday low of 18.59 is broken. Seeing silver go lower this week would NOT surprise me. Breaking a 1 month plus range lower just doesn't resolve itself with a few days down and then back to going higher. So again, probabilities are high we see lower silver.


Gold- 1319s are hanging on by a thread. Came close on Friday but didnt manage to get pushed down. Could this week be the one we see the start of a large drop? I think it is possible. 1319s give way, we go lower, simple.


Gold and silver are STILL IN UP TRENDS. If you are struggling to hold on with this pull back, I hate to see folks who couldnt handle last week's going into the coming weeks. The fact is silver and gold can pull back considerably here and STILL remain in an uptrend.

With commodities, with assets that fly, you have to expect and they do cut back dramatically and will make you think the up trend is over. If you cannot handle this sort of price action on pull backs, then it tells me you are carrying too much AND are too emotionally attacked to your position. Trading/investing scared in an uptrend will ensure you do not extract the most profit out of the trend.

For you dip buyers or anyone else who missed the buying back in February, let this bleed out some more. I am not fond of dip buying, I keep adding/buying the way up. However, up trends tend to be very accommodating and forgiving for buyers, so if you are looking to buy the dip, let this fall some more.

AGain, I repeat, for the novices here and inexperienced, we could pull back this week and even more the next and STILL BE IN AN UP TREND!!! Up trends can have some pretty vicious pull backs and commodities are no exception.

Getting nervous indeed.

I was late in getting here and only bought into Silver around $17.5, so this pullback has been frustrating to watch as I get closer and closer to stopping out. Just keeps going down and down and down.

Montana, I saw that Richard Wyckoff has several books. Which one are you referring to?

Btw, Silver just moved below Friday's Low of $18.59....

Thanks Montana, you too.