CPM Group Trade Signal - April 6 2020
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Featuring views and opinions written by market professionals, not staff journalists.
Prices as of 9:00 a.m. EDT (14.00hrs GMT) 6 April 2020 $1,676.55 (Basis the June 2020 Comex Contract).
Target Price / Range: $1,700, then $1,800
Timeframe: 06-04-2020 to 10-04-2020
Uncertainties around the negative economic consequences of the coronavirus and government actions to contain it remain in place. Governments and central banks around the world continue to inject liquidity into the financial markets to counter the negative fallout of the economic consequences. The combination of uncertain market conditions and increased liquidity provide an environment that is conducive to higher gold prices in the long run, and $1,800 cannot be ruled out within the next two months. Prices should be expected to retest the $1,700 level this week. If prices are able to settle above $1,700 supported by strong volumes, further gains can be expected, with the next strong resistance level at $1,800.
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.