Contributed Commentaries
CPM Trade Signal - Feb. 10, 2022
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Time Stamp
Prices as of 9:20 a.m. EDT 10 February 2022 $1,829.50 (Basis the April 2022 Comex Contract).
Recommendation: Buy
Initial Target Price / Range: $1,840 or higher
Initial Timeframe: 10 February 2022 to 18 February 2022
U.S. CPI figures released this morning were stronger than the market expected. This is positive for gold. Prices have been swinging wildly between $1,822 and $1,839 since the release of the U.S. CPI report and were in the middle of this range at the time of this writing.
Bond yields have risen in response to the strong inflation numbers. This will act as a headwind to gold prices. That said, since yields are rising in response to higher inflation the negative impact on gold will be lesser than what is usually felt. After the initial decline to $1,822, the market has been holding up failrly well at the $1,829 level. Investors should look buy at these levels, with a initial price objective of $1,840. Price have the potential to rise further, with $1,845 and $1,850 as next targets.
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.
