CPM Group Trade Signal - March 8, 2021
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Featuring views and opinions written by market professionals, not staff journalists.
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.