Contributed Commentaries
CPM Trade Signal - May 13, 2022
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Time Stamp
Prices as of 11:59 a.m. EDT Comex 13 May 2022 $1,806.20 (Basis the June 2022 Comex Contract).
Recommendation: Buy
Initial Target Price / Range: $1,830
Initial Timeframe: 13 May 2022 to 27 May 2022
Gold sold off over over the past few days along with stock markets as the U.S. dollar has appreciated. Gold had reached an intraday high of $1,885.60 at the start of the week. Inflation concerns appear to have weighed on many asset classes, as the latest inflations figures still remain at multi-decade highs. Real interest rates have been rising while bond yields have been appreciating recently on concerns of looming recessionary conditions ahead. The expectation of continued interest rate hikes may be weighing on gold prices at the moment. Technically gold prices are supported at $1,800, but a break below this could give way to $1,780. Gold prices could see a short term recovery following the sharp sell off, which could take prices to $1,830 over the next several days.
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.
