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CPM Group Trade Signal - February 12, 2021

Commentaries & Views

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Time Stamp
Prices as of 9:10 a.m. EST (14h10 GMT) 12 February 2021 $1,814.30 (Basis the April 2021 Comex Contract).

Direction: Sell

Target Price / Range: $1,805

Timeframe: 12-02-2021 to 15-02-2021

CPM's 9 February downside sell target of $1,825 was breached Thursday afternoon. This morning April Comex gold touched $1,812.40.

Gold has been trading between $1,800 and $1,880 since its 7 January sell-off, with the exception of a one-day spike down to around $1,785 last week. Gold may continue to trade in this range for the next few weeks.

Within this range, gold may have a bit more downside in the next day or two, especially with the trading holidays in the United States and Canada reducing liquidity on Monday. Prices could dip to around $1,805.

Beyond that gold is expected to rise back toward $1,845 in the coming weeks, remaining in its recent range. Some further weakness to test $1,800 or even $1,785 is possible, but a recovery to stay in a narrower price band seems more likely next week.

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.