|

Retail traders' hastiness

Be aware of making typical errors committed by retail traders of prematurely predicting turning points. Each time gold drops $70-$80 or Silver by $8-$12, they rush to call the end of the rally and the beginning of the correction. 

In the early hours of last Wednesday, XAU/USD jumped $120 to $4888 before slumping $130 to $4755, causing many to "call" the start of gold correction. Less than 24 hrs later, gold jumped to $4960. Yesterday (Monday evening Europe) many rushed to call the top in gold & silver. Indeed, yesterday, silver had soared more than £13 or 11%, the highest percentage daily rise since 17th September 2008, the day of the Lehman Bros Collapse.  On Monday, XAGUSD dropped to 101.92. Where is it now? 112.67

The greater fallout will surely come. Will it be after Wednesday's FOMC decision? 

So what did I tell our WhatsApp Bdcst members? See below: as long as the Gold/Silver ratio did not extend to 40, silver will remain on the rise. Why 40?

Author

Ashraf Laidi

Ashraf Laidi

AshrafLaidi.com

Ashraf Laidi is an independent global markets strategist with over 15 years' experience. He is author of "Currency Trading & Intermarket Analysis", and founder of AshrafLaidi.com.

More from Ashraf Laidi
Share:

Editor's Picks

EUR/USD reaches a fresh multi-year high in the 1.1930 region

EUR/USD resumed its advance after a modest downward correction and reached the 1.1930 price zone, its highest since May 2021. Market players keep dropping the Greenback despite an improved mood, with the focus back on US President Donald Trump's tariffs. 

GBP/USD resumes advance, stands above 1.3700

GBP/USD trades at fresh multi-week highs as the US Dollar (USD) broad weakness prevails. Latest headlines indicating that US President Donald Trump has resumed the trade war are impacting the American currency ahead of the Federal Reserve monetary policy decision.

Gold remains close to all-time peak amid safe-haven flows, weak USD, ahead of Fed

Gold attracts fresh buyers following the previous day's late pullback from levels beyond the $5,100 mark, or the all-time high, and sticks to the positive bias for the seventh straight day on Tuesday. The US Dollar struggles to gain any positive traction or register any meaningful recovery from its lowest level since September 2025, touched on Monday, amid concerns over US President Donald Trump’s trade policies. 

Bitcoin steadies as winter storm drops hashrate, BlackRock files for Premium Income ETF

Bitcoin (BTC) trades near $88,000 at press time on Tuesday, after reaching an intraday high of $89,010, and reflects an ease in buying pressure after Monday’s 2% rise. 

Trump tariff threats seemingly fall on deaf ears – Focus turns to Fed and Aussie CPI

US President Donald Trump ramped up trade tensions with South Korea yesterday after stating that Seoul is ‘not living up to its deal with the US’, as shown below via his Truth Social platform. 

Axie Infinity Price Forecast: AXS rallies as bAXS token reveal boosts retail demand

Axie Infinity is up 3% at press time on Tuesday, extending the 21% gains from Monday and a bullish start to the week. The gaming token regains retail demand following the announcement of its app token, bAXS, to replace the AXS token across the ecosystem and gameplay rewards.