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CPM Trade Signal - Jan. 20, 2022

Commentaries & Views

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Time Stamp
Prices as of 1:55 p.m. EDT 20 January 2022 $1,842.30 (Basis the February 2022 Comex Contract).

Recommendation: Buy

Initial Target Price / Range: $1,865

Initial Timeframe: 20 January 2022 to 31 January 2022


Prices rallied yesterday, from a low of $1,809 to test $1,848.50 today before easing. Prices could continue to move higher given the rising concern about recent economic, financial, and political data and events.

Inflation continues to rise in most parts of the world. More important for gold prices: Financial market expectations of inflation remain high and rising. Inflation may well plateau and decline, but the market’s perceptions most likely will lag actual inflation trends. Stock markets have shown increased volatility with some sharp downward moves in recent weeks and months, interest rates are rising in expection of tighter monetary policy, political friction continues to rise in advanced economies and in Eastern Europe, supply chain issues remain a problem, and logistics could futher be hampered by China’s zero Covid policy should the Omicron variant become increasingly prevalent in the world’s manufacturing hub. The U.S. dollar also has seen increased volatility and appears at the beginning of what may become a potential declining trend. Should these headlines persist, then gold could rise to test $1,865 or higher.

There is potential for profit-taking given the firm run up in prices, but a pull back may push gold toward $1,820, creating a firmer base from with prices could rise further.

While short-term trade recommendations provide high risk – high reward opportunities for investors, it is difficult to capture the complex web of factors affecting precious metals prices and the nuanced CPM analyses of these factors that goes into our firm’s price projections. In addition to these short-term outlooks, CPM Group provides clients enhanced trade recommendations that include one and three month price projections, as part of our Retail Investor Program. Contact CPM at info@cpmgroup.com for details.

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.