CPM Trade Signal - February 3, 2023
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Featuring views and opinions written by market professionals, not staff journalists.
Prices as of 11:05 a.m. EST 3 February 2023 $1,885.70 (Basis the April 2023 Comex contract).
Recommendation: Take Profits and Stand Aside
Initial Target Price / Range: $1,875 -$1,950
Initial Timeframe: 3 February 2023 to 17 February 2023
Gold prices have been on an uptrend since early November. Price volatility has increased this week, reflecting market reactions to the Fed’s comments Wednesday and today’s U.S. employment report.
All in one day, yesterday prices reached $1,975.20 from a low of $1,925.60 before falling sharply back. Further declines today as the employment data for the U.S. were much better than expected, weighing heavily on gold prices. Price volatility could extend into next week. There is rising uncertainty across markets about the current economic and political environment leading to vacillating financial asset prices, not just gold.
A break below $1,880 or $1,875 could see another sharp decline in prices. More likely in CPM’s view, if gold holds above $1,875 today and Monday we most likely would go long with an initial target of $1,950.
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 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.