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CPM Group Trade Signal - March 8, 2021

Commentaries & Views

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Time Stamp
Prices as of 12:08 p.m. EST (17h08 GMT) 8 March 2021 $1,675.40 (Basis the April 2021 Comex Contract).

Direction: Stand Aside

Target Price / Range: $1,650 - $1,720

Timeframe: 08-March-2021 to 12-March-202

Gold prices have fallen sharply over the past couple of weeks, from above $1,800 at the end of February to below $1,700. Prices are on a downward trend technically, but not so much based on other analysis. Financial and political risks continue. There has been recent optimism about the world’s economic recovery and the vaccine rollout which have weighed on gold prices. Bond yields have risen as investors move toward riskier asset classes.

The U.S. dollar has appreciated despite or perhaps because of a $1.9 trillion stimulus package expected to pass later this month. (Such spending may threaten future potential dollar market stability, but in the short-term it could help boost U.S. economic activity and stock prices more forcefully than those of other countries, leading global investors to buy dollars in order to participate in the U.S. recovery. In this way, excessive spending may be a short, and long, term positive for the dollar.)

There is scope for gold prices to drop briefly toward $1,600, but there also is scope for prices to rebound as investors cover short positions, bargain buying ensues, and technical buying picks up.

It is not clear which direction gold prices will firmly move toward first.

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.