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CPM Group Trade Signal - March 24 2020

Commentaries & Views

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Time Stamp
Prices as of 3:23 p.m. EDT (19h23 GMT) 24 March 2020 $1,658.50 (Basis the April 2020 Comex Contract).

Direction: Buy

Target Price / Range: $1,750 - $1,800

Timeframe: 25-03-2020 to 02-04-2020


Market volatility has been extremely high. Gold has seen heavy liquidation two weeks ago in futures and other derivative markets. Now it is seeing strong demand for physical metal even as refineries, mints, and other plants in the supply and distribution chain are shuttered by government decrees attempting to limit spread of the Covid-19 virus. The Fed has announced a range of unprecedented monetary moves to try to compensate for the more than $2.5 trillion gutting of U.S. economic activity in the coming second quarter. April Comex is rolling into June in advance of first delivery day next Tuesday, 31 March.

In this environment, gold could rise, sharply. $1,750 or even $1,800 are not out of the question given this mix. Prices also may fall sharply during this time.


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.