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CPM Trade Signal - July 29, 2021

Commentaries & Views

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Time Stamp
Prices as of 9:07 a.m. EDT (14h07 GMT) 29 July 2021 $1,830.40 (Basis the December 2021 Comex Contract).

Direction: Sell

Initial Target Price/ Range: $1,795 - $1,800

Initial Timeframe: 29 July 2021 to 13 August 2021


CPM’s most recent Gold Trade Recommendation on 15 July suggested that gold, then trading at $1,826.60, might be weak for the next several trading days but could rise as high as $1,840 in the final trading days of July, as the FOMC meeting would be behind the market and the August Comex gold futures contract’s open interest was rolled forward into December and to a lesser extent October positions.

Gold rose to $1,832.80 Thursday morning, 29 July. It may have a bit further to go over the next two or three trading days, but after the roll, CPM expects gold prices to decline during August. Initially prices may trade to $1,800, then $1,780, with the potential for deeper declines as the month progresses.

Investment demand has been relatively weak in recent weeks. While lower U.S. interest rates and affirmations of monetary accommodation in the short term support higher gold prices, stale bull liquidation of long gold positions by investors who expected sharply higher inflation and gold prices continues to weigh on the market while other investors continue to focus on stocks and bonds.

Gold price weakness could extend through August into September. We will be watching.


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
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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.