CME Gold futures and CME Silver futures had a most volatile move in recent time yesterday. Precious metals were continued with their fall on monday morning but staged a miraculous recovery leaving gold with its best gain since June 2012.
Gold which made a low of
$1437 make a sharp pullback in evening session and pullback near $1400
odd levels. CME silver Futures made a 12.5%, retested $ 23 after making
a low of $19.7 move in single trading session with volume 82% higher
than 100-day average.
So precious metals showing such
wild moves,You can’t help but think about risk when you think about
trading commodities. Any wrong trade without a strict Stop loss could
have wiped you out of market. I have seen many small traders with
capital as low as 50K trade in commodity market and such wild moves wipe
them out of market as they just trade on "LUCK", they have no trading
The aura of high risk in commodities ..