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CPM Group Trade Signal - February 17, 2021

Commentaries & Views

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Time Stamp
Prices as of 9:21 a.m. EST (14h21 GMT) 17 February 2021 $1,781.10 (Basis the April 2021 Comex Contract).

Direction: Sell

Target Price / Range: $1,765

Timeframe: 17-02-2021 to 19-02-2021

Gold prices have come off sharply over the past several days, dropping from above $1,825 at the start of this week to current levels. A strengthening U.S. dollar, rising 10-year U.S. bond yields (which are now at pre-pandemic levels), better than expected economic data, ongoing vaccinations in the U.S. and the world, potential demand weakness in China in coming weeks following the Lunar New Year, and an improvement in the economic outlook are all weighing on prices. In addition, gold prices are increasingly appearing weak as technical support levels continue to be broken.

Prices have the potential to recover from current levels, similar to what occurred in late November and early December. There will have to be shift in current technicals and sentiment for this to occur, however. Investors might step in as bargain buyers, but if support levels continue to be broken, the next stop for prices might be between $1,720 and $1,740.

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.