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CPM Group Trade Signal - November 24 2020

Commentaries & Views

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Time Stamp
Prices as of 9:45 a.m. EDT (14h45 GMT) 24 November 2020 $1,801 (Basis the December 2020 Comex Contract).

Direction: Standby

Target Price / Range: $1,750 - $1,850

Timeframe: 24-11-2020 to 01-12-2020

Gold prices have been declining since 9 November, and that trend seems set to continue in the short term. Gold prices are testing their 200-day moving average of $1,800 at the time of writing this report. If prices settle below this level, they could attract a lot of technical based selling, which could drive prices down toward $1,750 as a first support but a decline to $1,650 should not be ruled out. It is recommended that investors stand aside until prices stabilize. Positive news on Covid vaccines and the U.S. election drama, mostly behind the market is creating a risk-on environment that has pushed prices down as investors backed away. Beyond such a short-term investor response, there remain several massive structural macroeconomic issues that are expected to be supportive of gold prices in the medium to longer term. CPM Group’s medium to long term expectation is for gold prices to rise and would recommend that investors buy gold when prices stop falling.

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.

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.