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CPM Trade Signal - April 22, 2022

Commentaries & Views

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Time Stamp
Prices as of 10:20 a.m. EDT 22 April 2022 $1,936.50 (Basis the June 2022 Comex Contract).

Recommendation: Buy

Initial Target Price / Range: $1,965 initially, higher later

Initial Timeframe: 23 April 2022 to 2 May 2022


Gold prices have fallen sharply over the past three days, in line with stocks and other commodities, as financial markets have shifted their focus on the increased possibility of a 0.50% increase in U.S. short-term Fed Funds rates when the FOMC meets in the first week of May. This view, reinforced by Fed statements and comments, has led to a sharp rise in U.S. dollar interest rates and the U.S. dollar exchange rate, along with a broad sell-off of financial assets, including gold and silver.

The bullish factors that are likely to keep gold high and move it higher in the near term remain in place: the war in Ukraine and financial market concerns about high inflation. They are likely to push gold prices higher over the next few weeks, but presently are taking less prominent positions in the collective minds of the financial markets as the potential for rising interest rates command attention.

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.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.