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CPM Group Trade Signal - May 19 2020

Commentaries & Views

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Time Stamp
Prices as of 9:17 a.m. EDT (14h17 GMT) 19 May 2020 $1,735.40 (Basis the June 2020 Comex Contract).

Direction: Buy

Target Price / Range: $1,765 - 1,775

Timeframe: 19-05-2020 to 29-05-2020


Gold blew past our previous $1,760 target on 18 May, touching $1,776 before falling back to trade around $1,730 - $1,740 the rest of the day and into 19 May. While prices remain susceptible to spikes lower, the over-riding trend remains to the upside. Optimism about moving toward restarting European and North American economies coupled with continued massive fiscal and monetary stimulus programs have boosted equities and commodities. This optimism may be misplaced and possibly premature. Petroleum now is above $30 per barrel, the Saudis having made their point to the Russian government. Additionally, there are still 25.8 million ounces of June Comex positions that need to be rolled forward, closed out, or delivered into, which should support gold prices into the end of May.


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.