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CPM Group Trade Signal - February 16, 2021

Commentaries & Views

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Time Stamp
Prices as of 8:58 a.m. EST (13h58 GMT) 16 February 2021 $1,797.40 (Basis the April 2021 Comex Contract).

Direction: Sell

Target Price / Range: $1,780

Timeframe: 16-02-2021 to 19-02-2021

Gold prices declined this morning as dollar strength and rising bond yields weighed on prices. There is increasing inflation concerns in financial markets, which CPM continues to see as misplaced. Regardless of our views, the market is focusing on potential inflation.

Since the end of January gold has risen more slowly than it has fallen. The roll of the February contract is behind the market now, suggesting less support for prices. Technically, prices appear to be increasingly becoming vulnerable to a sell-off. The upward trend that had existed last year is on pause for now. CPM has been expecting somewhat slower upward price moves in gold this year, especially in the second and third quarters. This may be unfolding now.

The potential for further declines both in the very short term covered by these Trade Recommendations and over the next seven months remains. Past reports have referred to $1,720 and $1,740 as possible in downward spikes short term. Longer term we expect gold prices to strengthen amid a plethora of financial, economic, political, and social issues confronting the world and individual nations.

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.