Contributed Commentaries
CPM Trade Signal - September 30, 2022
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Time Stamp
Prices as of 9:57 a.m. EDT Comex 30 September 2022 $1,679.15 (Basis the December 2022 Comex Contract).
Recommendation: Buy
Initial Target Price / Range: $1,695
Initial Timeframe: 30 September 2022 to 7 October 2022
Gold prices are recovering from oversold conditions earlier this week. This recovery could continue in the short term, with initial resistance at $1,695. While U.S. economic growth is holding up fairly well at present there are growing concerns about future economic growth, which should be expected to be supportive of gold prices. There also is an escalation of tensions between Russia and the West over Ukraine, which should provide additional support to gold prices.
The U.S. dollar is taking a breather from the overbought conditions seen recently, but it is likely to continue on its upward trajectory, which combined with elevated real rates on U.S. Treasury debt is expected to act as a headwind to gold prices.
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 maintains the posture in the most recent Trade Recommendation.
Position may be closed out once target price is reached, within the noted discretion or until CPM provides new trade recommendation. CPM may have reported to have closed out of prior trade recommendation at its discretion before publicly publishing new trade recommendation due to processing time.
Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target.
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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