CPM Group Trade Signal - January 22, 2021
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Prices as of 11:15 a.m. EDT Settlement time (16h15 GMT) 22 January 2021 $1,854.00 (Basis the February 2021 Comex Contract).
Target Price / Range: $1,830
Timeframe: 22-01-2021 to 29-01-2021
CPM issues a short-term Sell recommendation on gold two days ago, on 20 January. Gold had risen to $1,866.50. Our view was there was a reduction in political and economic uncertainty with the change of U.S. governments, which would be reflected in less investor demand in the short run. Longer term the changes might prove bullish for gold, but not in the next few days. Accordingly, we suggested gold could drop quickly to $1,840, with the potential for prices to drop to $1,800 or $1,780 in the next few weeks. We also outlined the scope for a sharper decline.
Gold has dropped to $1,836.30 in New York morning trading today.
CPM is maintaining its Sell recommendation for all of the reasons outlined in our 20 January Trade Recommendation.
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.