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CPM Group Trade Signal - June 10, 2021

Commentaries & Views

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Time Stamp
Prices as of 4:00 p.m. EDT (21h00 GMT) 10 June 2021 $1,900.00 (Basis the August 2021 Comex Contract).

Direction: Sell

Initial Target Price/ Range: $1,875

Initial Timeframe: 11 June 2021 to 18 June 2021


CPM issued a Sell recommendation on Friday 4 June, when gold was at $1,894.90, with a downside target of $1,875 in the period up to 11 June.

Gold dropped to $1,871.80 on the morning of 10 June, in the face of a strong U.S. dollar. Prices then recovered sharply, trading as high as $1,902.70 in response to significantly lower U.S. Treasury interest rates and a relatively high U.S. CPI inflation report for May.

The inflation data supports the view that the recent and current increase in U.S. inflation is transitory, with around 25% of price increase in the index related to higher petroleum product and natural gas prices. The other strong areas were restaurant prices, air transportation, and apparel, as U.S. citizens step out after the extended economic lock down. Used car prices were strong again, while medical costs were significantly lower.

The lower interest rates perhaps were more dynamic on gold prices.

CPM expects prices to remain in recent ranges, with the potential for prices to drop back to around $1,875 next week.

Notes:

Initial Target Prices and Timeframes are just that: Initial. If CPM does not issue a new Recommendation during or after that time it indicates that CPM is maintain the posture in the most recent Trade Recommendation.

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.

CPM’s preferred investment strategies use physical, futures, forwards, and options.


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.