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CPM Trade Signal - Oct. 13, 2021

Commentaries & Views

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Time Stamp
Prices as of 10:13 a.m. EDT (15h13 GMT) 13 October 2021 $1,760.50 (Basis the December 2021 Comex Contract).

Direction: Sell

Initial Target Price/ Range: $1,750

Initial Timeframe: 13 October 2021 to 29 October 2021

Gold prices have been trending lower since peaking in early June around $1,900. After having fallen to test $1,725 in late September, prices moved higher and have been holding above $1,750 since the start of the month. Recent headlines have provided some support to gold, but prices have not been able to firmly move much higher than $1,780.

On 30 September CPM issued a Gold Trade Recommendation at $1,757.40, suggesting that while we expect gold prices to move higher over the fourth quarter prices were vulnerable to a decline to as low as $1,710 - $1,720. Prices have held above $1,740 since then. They rose sharply this morning, to $1,778.50, but fell back to around $1,760.50 after the U.S. September CPI data were released.

Today’s inflation figures release about U.S. conditions initially pushed prices lower, but as prices tested support levels gold then turned direction and moved higher. Then they declined once more.

Gold may remain between $1,740 and $1,780 for a short time more, moving to test $1,750 during the next few days. At some point prices will break out of this range, with the scope for a sharper move in either, or both directions: There could be a spike lower followed by a spike higher in the next three months.

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.