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CPM Group Trade Signal - February 4, 2021

Commentaries & Views

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Time Stamp
Prices as of 10:15 a.m. EST (15h15 GMT) 4 February 2021 $1,789.00 (Basis the April 2021 Comex Contract).

Direction: Buy

Target Price / Range: $1,815

Timeframe: 04-02-2021 to 12-02-2021


Gold has dropped sharply, following a spike up late last week and on Monday. This morning prices dropped as low as $1,784, close to CPM’s near-term $1,780 sell objective. Given the decline, CPM would expect a recovery in the next day or so, possibly rising back to around $1,815 or $1,820.

Beyond that, CPM maintains its view of near-term gold price weakness, as discussed in the 20 January 2021 Trade Recommendation. While prices may recover in the next few days, downside exposure remains. $1,780 clearly is possible.
 
In CPM’s 20 January Trade Recommendation we wrote about the potential for a sharper spike similar to the $145 drop after 6 January, that could take gold briefly to $1,720 or $1,700. Such a decline cannot be ruled out given current market weakness as institutional investors are increasingly positioning themselves to profit from short-term lower prices.

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.