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CPM Trade Signal Update - Oct. 13, 2021

Commentaries & Views

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Time Stamp
Prices as of 12:22 p.m. EDT (17h22 GMT) 13 October 2021 $1,795.20 (Basis the December 2021 Comex Contract).

Direction: Sell

Initial Target Price/ Range: $1,775

Initial Timeframe: 13 October 2021 to 29 October 2021

Gold prices jumped higher shortly after CPM had issued a Trade Recommendation this morning, when gold was trading around $1,760.50. Gold broke above $1,780 and rose to $1,797.40, preparing to test $1,800.

The surge in prices suggests investors and other market participants see the higher U.S. CPI inflation figures released this morning as indicative of higher inflation longer term, triggering technical levels for fresh long buying and stop-loss liquidation of shorts. CPM would not be surprised to see this short-term move give way over the next few days. Prices may continue to test $1,800, but if this level is not broken, a pivot back to short positions could take gold prices lower soon after. Markets are becoming more volatile, with gold no exception, as investors struggle to discern whether the Fed can control inflationary pressures.


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.