Gold prices have been on an upward trajectory in recent days, with the metal pushing above $5,000 per ounce once again. This surge has led to increased volatility in the market, making it a challenging environment for investors and traders alike. According to UBS’s Strategic and Tactical Research team, main flows are currently real money selling versus light fast money buying, while silver (XAG) remains quiet.

In order to navigate this turbulent market, it is crucial to have a well-thought-out strategy in place. At the desk level, the tactical view is leaning short both intraday, with stops set above $5,106 for gold and $95.25 for silver. These levels were determined based on the initial large drop on January 29, and the subsequent hold on the downside on January 30.

To successfully navigate this market, it is essential to size positions accordingly. This means taking into account the potential risks and rewards of each trade, as well as the overall market conditions. By doing so, investors can minimize their exposure to risk while maximizing their potential returns.

In addition to sizing positions carefully, it is also important to stay informed and up-to-date on market developments. This includes keeping an eye on economic indicators, geopolitical events, and other factors that may impact the gold and silver markets. By staying vigilant and adaptable, investors can better navigate the challenges posed by high volatility in these markets.