CPM Group Trade Signal - October 28 2020
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Prices as of 1:04 p.m. EDT (17h04 GMT) 28 October 2020 $1,882.90 (Basis the December 2020 Comex Contract).
Direction: Stand Aside
Target Price / Range: $1,850 - $1,935
Timeframe: 29-10-2020 to 4-11-2020
On 28 October gold prices joined stocks, currencies, bonds, and other commodities in a large sell off, as the dollar rose. Concerns about the economic, political, and social consequences of further restrictions if not total lockdowns as the pandemic worsens again in the United States and Europe were behind the move to cash and the dollar. This move is expected to be short-lived.
Gold has a downside objective around $1,850, a level at which it may hold.
The key is momentum. Overall the economic, financial, and political environment remain supportive of investment demand and higher prices. As soon as the downward momentum stops gold prices are expected to recover, with levels above $1,900 as their new targets.
Note: Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM.
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.