Make Kitco Your Homepage

CPM Trade Signal - Sep. 9, 2021

Commentaries & Views

Be the first to know when a new trade signal is out! Click here to sign up for e-mail notifications.

Time Stamp
Prices as of 9:14 a.m. EDT (14h14 GMT) 9 September 2021 $1,799.80 (Basis the December 2021 Comex Contract).

Direction: Buy

Initial Target Price/ Range: $1,815 - $1,820

Initial Timeframe: 9 September 2021 to 17 September 2021


Gold prices rallied late last week amid advserse economic data. Prices topped out at the $1,836.90 before retreating this week. Prices bottomed out at $1,783.10 this week before recovering. Gold appears to want to break out of its recent range. Chart patterns suggest higher prices, but there is firm resistance at $1,840.

Last Friday’s weaker then expected U.S. jobs report, the Beige Book acknowledgement that across the U.S. economic performance weakened in late July through August, slightly tightening monetary and fiscal policies in many countries, and other factors suggest somewhat weaker economic output in the next several weeks, which could bolster investor interest in gold.

September is typically a seasonally strong period for prices. This trend was broken last year due to Covid, but looks to be in place this September and heading into the last quarter of the year, at least as of now. CPM recommended a buy for gold late last week, and with prices lower than they were then, CPM reaffirms its buy stance, especially at around current price levels. Not much has changed economically and financially since prices have been rallying from early August.

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.