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CPM Group Trade Signal - August 22nd 2019

Commentaries & Views

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Time Stamp
Prices as of 10:30 a.m. EDT (15h30 GMT) 22 August 2019 $1,508.70 (Basis the December 2019 Comex Contract).

Direction: Sell

Target Price / Range: $1,490

Timeframe: 22-08-2019 to 30-08-2019


Gold prices are looking vunerable, with technically oriented traders testing $1,500 in the December contract and some of the recent bullishness seemingly dissipated.

There is added caution in advance of Fed Chairman Jerome Powell’s speech at Jackson Hole on Friday. Many market participants’ overall expectation seems to be that Chairman Powell is unlikely to suggest cutting rates aggressively, but instead will indicate the need and willingness to be flexible and lower rates as needed. This could create a short-term decline in prices providing an opportunity to re-purchase gold on a dip with the further expectation of higher prices in September and beyond.

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.