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CPM Group Trade Signal - August 12 2020

Commentaries & Views

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Time Stamp
Prices as of 10:00 a.m. EDT (15h00 GMT) 12 August 2020 $1,946.20 (Basis the December 2020 Comex Contract).

Direction: Buy

Target Price / Range: $2,000

Timeframe: 12-08-2020 to 21-08-2020


Gold and other precious metals prices have been extremely volatile over the past three weeks, rising more than $260 between 20 July and 7 August. Profit-taking then set in, taking gold as low as $1,874.20 in Asian market times on 12 August.

The volatility reflects enormous uncertainty over U.S. political developments, including a second round of pandemic financial support programs stalled in Congress. Additionally, there are issues related to the U.S. China Trade War, including a review of the Phase I trade deal between China and the U.S. on 15 August. There are in fact many additional political, economic, financial, and public health uncertainties contributing to the volatility in precious metals markets, as investors seek places to park large volumes of money.

These uncertainties and the consequent precious metals volatility are expected to continue.

Gold prices should be expected to trade a wide range, perhaps between $1,820 and $2,100, over the next three weeks.


Note: Discretion should be allowed at +/- $2.00 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.