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CPM Trade Signal - Jan. 11, 2022

Commentaries & Views

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Time Stamp
Prices as of 1:45 p.m. EDT 11 January 2022 $1,818.60 (Basis the February 2022 Comex Contract).

Recommendation: Hold

Initial Target Price / Range: $1,800 - $1,840

Initial Timeframe: 11 January 2022 to 21 January 2022

Gold prices have been making higher highs and higher lows since the second half of December. This is technically positive for higher gold prices, since support for gold continues to hold at higher levels. Prices moved up today as the Fed signaled that there was enough stimulus already in the market and that tightening could begin earlier than anticipated. This may suggest that the Fed is becoming increasingly concerned about inflation given the recent headline numbers in recent months. Tomorrow’s U.S. inflation figures are expected to continue to be high, but a large deviation has the potential to disappoint and could weigh on prices if it comes in lower than expected. Higher than expected inflation also could weigh on gold prices, since it would suggest that the Fed could tighten sooner rather than later.

How the market digests tomorrow’s CPI figures will influence where gold prices will head toward. It is recommended to continue holding the buy recommendation issued last week. Given the uncertainty surrounding market reaction to tommorow’s U.S. CPI figures, it is recommended to place a stop order at $1,815. A break below $1,815 could push prices toward $1,800. If prices do move higher, there already is a long position in place, and depending on how the markets respond to the CPI figures CPM Group will issue a new recommendation.


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.