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CPM Group Trade Signal - February 26, 2021

Commentaries & Views

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Time Stamp
Prices as of 9:08 a.m. EST (15h08 GMT) 26 February 2021 $1,759.80 (Basis the April 2021 Comex Contract).

Direction: Sell

Target Price / Range: $1,750

Timeframe: 26-02-2021 to 05-03-2021

CPM had a Sell signal with a $1,750 target last week through today. Gold got within our 0.2% margin of that this morning, touching $1,753.50 before recovering. The gold price decline today has to be seen in the context of a sharp rise in the dollar, which precipitated steep declines in a broad range of assets, from commodities including oil, base metals, precious metals and agricultural commodities to equity markets.

While gold appears a bit oversold at these levels, the short-term trend still is pointing lower. Additionally, CPM has been expecting prices to move somewhat lower on seasonal and economic conditions in the second and third quarters, so gold appears more likely to move sideways over the coming weeks and months.

While we are re-stating our $1,750 downside target for the next week, further weakness over the next seven months could take gold lower, toward $1,720 and even $1,700. Prices seem unlikely to decline much more than that given the plethora of pandemic, health, and political issues facing the world.

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.