Contributed Commentaries
CPM Trade Signal - September 5, 2023
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
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Prices as of 10:54 a.m. EST 5 September 2023 $1,952.20 (Basis the December 2023 Comex contract).
Recommendation: Sell
Initial Target Price / Range: $1,940
Initial Timeframe: 5 September 2023 to 19 September 2023
Gold prices are expected to head lower over the next two weeks. Gold has mostly been moving in a $1,920 - $1,960 range over the past month and may continue to do so in the near term. Prices may test the lower end of this range. Calling short term ups and downs within a trading range is more treacherous than calling short term moves when prices have more clearly defined upward or downward trends, but prices within a trading range can offer profits to facile short-term investors.
Most major indicators suggest lower prices, such as an appreciating dollar, lower inflation compared to earlier this year, rising real interest rates, hawkish monetary policy, technically weak prices, and reduced concerns about economic conditions. There do remain political concerns and other longer term concerns supporting gold prices, but for the moment prices may give way to a broader sell off.
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.
CPM Group wants to thank the following companies for helping us make these short Trade Signals available free of charge, and for their commitment to providing good information in opaque and asymmetrical commodities markets.
Kitco
Metallic Minerals
Stillwater Critical Minerals
Granite Creek Copper
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