Friday, April 21, 2006

Gold and Silver: Wild Price Action !

Expect this wild price behavior to continue, in 20 days the price of gold moved from ~585$ to 645$, then 24 hours correction and the gold price fall 38$ … The silver price is even more volatile pulling back 3$ in 24 hours. This wild action could be destructive for mismanaged over leveraged positions both on the long side and the short side, successful trading opportunities will probably continue to be offered by both silver and gold. This correction will develop one way or another, the market will speak. Accumulation will continue in my opinion – this is a temporary market reaction.

Silver spot intraday chart

Gold spot intraday chart

Related : Commodities Charts , Gold & Silver Stocks


John East said...

My reaction to this price action was massive relief. I lightened up my position at $585 and was extremely grateful being allowed back in on Thursday when the price collapsed.

Of course, I now feel like an ace trader, but had Thursday's fall presaged a sub-$580 correction as many expected I would now feel like an ace idiot.

I suppose we all get lucky sometimes.

That bounce on Friday suggests to me a lot of underlying strength. The next few weeks should be fun.

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