CPM Group Trade Signal - August 13th 2019
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Prices as of 11:22 a.m. EDT (16h22 GMT) 13 August 2019 $1,514.30 (Basis the December 2019 Comex Contract).
Target Price / Range: $1,535
Timeframe: 13-08-2019 to 20-08-2019
Gold prices rose sharply Tuesday, and then fell equally dramatically. The rise reflected investor concerns about the state of global and national economies as well as political developments in Hong Kong, Washington, and elsewhere. The price decline illustrated the speed at which investors will sell gold on better economic news: In this instance higher U.S. inflation and a not-unexpected announcement by the U.S. government that it would delay its most recently threatened tariffs on Chinese products.
Gold prices now are moving strength to strength, with new waves of short-term buying in futures, forwards, options, and ETFs on most price dips. Longer term investors still have not joined the buying spree, nervous about a false start in rising gold prices. Given this shift in the gold price dynamics, based on the plethora of economic and political risks abroad in the world, investors should plan to be long gold, buying on dips and, if they so choose, taking profits on spikes.
Note: Discretion should be allowed at +/- $0.50 from the target.
Disclaimer â€“ Past performance is no indication or guarantee of anticipated future profits, and neither Kitco Metals Inc. nor CPM Group can accept any liability or responsibility for any loss suffered as a result of gold price fluctuations. Gold as a commodity is not a specified investment for the purpose of giving advice under the Financial Services and Markets Act 2000. Therefore this trade recommendation does not give rise to rights to claim compensation under the Financial Services Compensation Scheme. CPM Group is a registered CTA with the U.S. NFA and CFTC. At times the principals and associates of CPM Group may have positions in the precious metals, commodity, and equities markets. CPM Group also manages investment and industrial positions in markets for its clients.