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CPM Group Trade Signal - June 28, 2021

Commentaries & Views

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Time Stamp

Prices as of 9:30 a.m. EDT (14h30 GMT) 28 June 2021 $1,779.40 (Basis the August 2021 Comex Contract).

Direction: Stand Aside

Initial Target Price/ Range: $1,770 - $1,800

Initial Timeframe: 28 June 2021 to 9 July 2021



On 17 June CPM’s short-term gold Trade Recommendation was that gold would trade between $1,770 and $1,800 over the next few weeks. We suggested anyone with profits in short-term positions might take profits and stand aside.

Gold has traded in that range over the past 11 days. We expect it to continue to do so in the next two weeks.

Gold remains vulnerable to ‘another leg down’ should prices break below $1,770, with $1,680 as a key technical downside target. This remains a real possibility should economic expectations improve and some of the inflation concerns dissipate. Both are possible.

By mid-July we expect some upward pressures on gold prices, which could lead prices to rise to $1,820 - $1,850 by the beginning of August. So, if prices do or do not fall in the next two weeks, CPM expects to be recommending a short-term buy position by the middle of July.

In the interim CPM would continue to advise spot investors to lock in any profits on short positions and stand aside awaiting clarity in the next move. It would advise options-based investors to buy straddles.

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.