CPM Trade Signal - April 13, 2022
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Featuring views and opinions written by market professionals, not staff journalists.
Prices as of 9:30 a.m. EDT 13 April 2022 $1,981.60 (Basis the June 2022 Comex Contract).
Initial Target Price / Range: $2,000 initially, probably higher later
Initial Timeframe: 13 April 2022 to 22 April 2022
CPM’s 11 April Gold Trade Recommendation at $1,971 suggested gold would rise this week and next, spurred higher by investor concerns and thinking related to two factors.
1. The potential for the ongoing Russian invasion of Ukraine to worsen in the near term.
2. The likelihood that financial markets would react to the anticipated higher CPI data released on 12 April by buying gold, at least on the short term.
Both factors have transpired, and gold traded as high as $1,984.80 this morning, surpassing our initial objective of $1,980.
We had a further target at $2,000, assuming these conditions persist in the forefront of gold investors’ minds for a while. That remains our target.
Profit taking is possible at any point, but investors have been maintaining an overall bullish posture toward gold. In this environment gold prices are likely to trend higher.
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.