Contributed Commentaries
CPM Trade Signal - March 24, 2022
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Featuring views and opinions written by market professionals, not staff journalists.
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Time Stamp
Prices as of 9:52 a.m. EDT 24 March 2022 $1,948.20 (Basis the April 2022 Comex Contract).
Recommendation: Buy
Initial Target Price / Range: $1,980
Initial Timeframe: 24 March 2022 to 1 April 2022
Gold prices have resumed rising this week in the face of the ongoing Russian war on Ukraine, breaking out of a short-term range to the upside.
The war now appears most likely to continue for some time, as Ukrainian forces are beginning to receive a more consistent supply of arms and are effectively combatting Russian forces on several fronts. Domestic Russian opposition meanwhile appears to be growing, including in the political and military elite, while U.S. and NATO leaders appear content to let a war of attrition continue.
In this environment gold prices still seem most likely to move higher, back toward $2,000 and possibly higher, with a short-term initial targe around $1,980.
Should the NATO position change, the scenario would shift dramatically. Should NATO mount either humanitarian or military efforts it would likely precipitate Russia retaliation.
A third alternate scenario would be that Russia ups its taunts of NATO, uses chemical weapons against civilian populations in Ukraine, or further escalates its assaults on civilian targets.
Either of those two alternate scenarios would be likely to push gold higher faster.
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 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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