Contributed Commentaries
CPM Trade Signal - Feb. 11, 2022
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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Time Stamp
Prices as of 4:00 p.m. EDT 11 February 2022 $1,863.70 (Basis the April 2022 Comex Contract).
Recommendation: Sell
Initial Target Price / Range: $1,845
Initial Timeframe: 11 February 2022 to 18 February 2022
All markets responded strongly to concerns over Russia potentially invading Ukraine as early as this weekend. Gold shot up sharply, touching an intraday high of $1,867.40. Prices could see some pull back next week following the sharp run up today regardless of whether or not such an invasion occurs.
Prices could find initial support at $1,850 and stronger support at $1,845. Even if Russia does not take any action this weekend, until there is a clearer resolution on the issue there is likely to be a premium for this concern factored into gold prices. Additionally, the strong U.S. inflation figures released on 10 February should provide further downside support to gold prices.
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.
