CPM Trade Signal - March 11, 2022
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Featuring views and opinions written by market professionals, not staff journalists.
Prices as of 9:30 a.m. EDT 11 March 2022 $1,970.70 (Basis the April 2022 Comex Contract).
Initial Target Price / Range: $2,000
Initial Timeframe: 11 March 2022 to 25 March 2022
Gold prices spiked sharply higher and then lower this week, reaching $2,078.80 before retreating sharply to as low as $1,960 this morning. Gold prices were moving in broad concert with the prices for oil, wheat, silver, platinum, palladium, the dollar, and other assets. The spike higher reflected concerns emanating from the Russian invasion of Ukraine. The decline reflected profit-taking.
The war is not over, and prices should be expected to rise again. Even though gold prices have backed off in recent days, this does not mean that gold prices will not cointinue their upward trend.
Not much has changed from earlier this week in terms of support for gold in fundamentals or major headlines. The major negative for gold has been concerns and speculation in the west that the Russian Central Bank may need to sell some of its 74 million ounces of gold since around 70% of its foreign exchange reserves are estimated to have been frozen in offshore banks by sanctions.
The fallout effects of the Russian-Ukrainian war will continue to reverberate throughout the world. Crude oil product prices have surged and will likely not come down anytime soon. Inflation figures recently show continued upward momentum, although the broad-based price increases of January were not continued in the U.S. February CPI figures released 10 March. Uncertainty remains about much of the financial, economic, political landscape, and the war that gold will remain volatile and seems likely to rise again in the near term.
CPM has one-month, three-month ranges and eight-quarter quarterly price projections with greater discussion of the factors behind CPM’s analyses provided in CPM’s monthly subscription service, the Precious Metals Advisory.
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 firstname.lastname@example.org for details.
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.