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CPM Group Trade Signal - June 5 2020

Commentaries & Views

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Time Stamp
Prices as of 10:55 am EDT (15h55 GMT) 5 June 2020 $1,673.90 (Basis the August 2020 Comex Contract).

Direction: Sell

Target Price / Range: $1,640

Timeframe: 05-06-2020 to 12-06-2020

Gold prices are dropping, breaking below technical support levels as investors unwind large long positions with a view that the worse of the recessionary contractions are behind the economies of North America and Europe, and that monetary authorities and governments will be able to manage recovery. Those expectations, or hopes, may be premature, but regardless there is a move away from risk hedges at this point, moving into the traditional period of weak demand and prices for gold. Prices could strengthen early next week, as many problems remain, but such a move, possibly back toward $1,700 or even $1,720, would seem to CPM more likely to be a pause in a broader intermediate trend that could take gold to $1,640. Prices could weaken further over the next three months, depending on economic and political trends.

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.