CPM Trade Signal - May 5, 2022
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Prices as of 10:29 a.m. EDT Comex close,5 May 2022 $1,889.00 (Basis the June 2022 Comex Contract).
Initial Target Price / Range: $1,925
Initial Timeframe: 5 May 2022 to 20 May 2022
Gold prices fell sharply early this week, touching a low of $1,849.70 before recovering. Prices of other assets also fell, including stock markets, bonds and other commodities, ahead of the expected Fed Funds rate increase yesterday. The increase in interest rates initially propped up stock markets, but now these are off sharply.
Inflation remains a concern, especially now that China is undergoing Covid related lockdowns and there is an expectation that supplies of fabricated goods coming from China will be in short supply. Russia and Ukraine also continue to cause uncertainty as the war between the two nations does not appear like it will come ot an end anytime soon.
Gold prices are likely to continue to head higher, now that the short term trend points upward. The break above $1,900 suggests higher prices, but gold will likely have to settle above this level for prices to continue to climb.
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.