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CPM Group Trade Signal - January 27, 2021

Commentaries & Views

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Time Stamp
Prices as of 2:30 p.m. EST (19h30 GMT) 27 January 2021 $1,842.70 (Basis the February 2021 Comex Contract).

Direction: Sell

Target Price / Range: $1,820

Timeframe: 28-01-2021 to 05-02-2021


Gold dropped below CPM’s most recent downside near-term objective of $1,830 today, touching $1,828.40 before rebounding. It now is at $1,842.70.

The FOMC meanwhile issued its FOMC statement and its Statement of Longer-Run Goals and Policy Strategy. It views the economic recovery as slowing. Nothing has changed in its monetary response, and the Fed expects to remain highly accommodative for a long time to come.

While CPM Group expects gold prices to rise in the medium to long term, in the coming week gold prices may decline further, on account of weak technicals and a reduction in some of the economic and political risks. The next near-term target is $1,820, with declines below that possible in the near term.

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.