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CPM Group Trade Signal - April 23, 2021

Commentaries & Views

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Time Stamp
Prices as of 1:30 EDT (118h30 GMT) 23 April 2021 $1,777.60 (Basis the June 2021 Comex Contract).

Direction: Buy

Target Price / Range: $1,805 - $1,815

Timeframe: 26 April 2021 to 30 April2021

Gold prices have risen in the past two weeks, with most of the increase on 15 April. Gold has pushed toward $1,800 in the past three trading days, but has not yet broken above it.

Gold has been rising primarily due to falling U.S. Treasury interest rates. There has been strong demand for U.S. bonds over other sovereign debt over the past two weeks, despite better European economic prospects. A weaker dollar also has encouraged short-term investors to buy gold.

Prices could and should be expected to fall back, but it might be a week or two before that happens. In the next week investors should not fight the trend toward higher prices. CPM expects gold to break above $1,800 and make a run for $1,805 - $1,815 before dropping back in early May.

CPM’s 8 April Precious Metals Advisory report had $1,770 as the potential high for April, and $1,800 as possible in May and June. Our view is $1,800 may be seen next week, the last week of April. We also continue to expect seasonal weakness in prices during the next three months.

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.