Contributed Commentaries
CPM Trade Signal - Feb. 1, 2022
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Time Stamp
Prices as of 10:29 a.m. EDT 1 February 2022 $1,800.20 (Basis the April 2022 Comex Contract).
Recommendation: Buy
Initial Target Price / Range: $1,818
Initial Timeframe: 1 February 2022 to 11 February 2022
Gold prices have recovered from a low of $1,780.60 touched late last week. The knee-jerk reaction that pushed prices lower following the Fed’s is now passed and sentiment is shifting toward the long side. The technical break above resistance of $1,800 bodes positively for gold. If prices can stay above this level the next stop could be $1,820.
Not much has changed since last week when prices were testing $1,850 before the Fed’s comments. The financial, economic, political, and health panorama continue to face problems. Inflation will not decline this month just because of some hawkish statements. It will take quarters of real monetary policy action combined with changes in supply and demand for goods and services in the real economy. In the interim, gold will be supported around current levels, trending toward the higher end.
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.
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