Trade Signal - February 8, 2021
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Prices as of 9:50 a.m. EST (14h50 GMT) 8 February 2021 $1,830.80 (Basis the April 2021 Comex Contract).
Target Price / Range: $1,845
Timeframe: 09-02-2021 to 16-02-2021
April Comex gold prices dropped to $1,784.60 on Thursday 4 February on heavy trading volumes before recovering. Prices have risen back to $1,831 on Monday 8 February. Prices are moving between $1,780 or $1,800 on the low end and $1,880 on the high end. At $1,830.80 prices may rise another $15 or so in the next few trading days, to around $1,845, before selling off. Prices later may drop back to $1,820 or $1,800.
On 8 February the prices of stocks, bonds, the dollar, oil and other commodities all are rising. This probably primarily reflects market expectations of strong fiscal stimulus and monetary accommodation, coupled with an uptick in inflation expectations. While CPM Group does not see inflation as becoming problematic, a healthy uptick in inflation coupled with a low interest rate environment could be supportive of all assets. While this has buoyed a wide range of financial assets it is not so compelling as to suggest prices will break out of the recent range in the next week or two.
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.