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CPM Group Trade Signal - August 13th 2019

Commentaries & Views

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Time Stamp
Prices as of 11:22 a.m. EDT (16h22 GMT) 13 August 2019 $1,514.30 (Basis the December 2019 Comex Contract).

Direction: Buy

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 – 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.


 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.