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Time Stamp
Prices as of 9:25 a.m. EDT Comex 10 June 2022 $1,839.50 (Basis the August 2022 Comex Contract).
Recommendation: Buy
Initial Target Price / Range: $1,860
Initial Timeframe: 10 June 2022 to 17 June 2022
Gold prices hit CPM Group’s previous price target of $1,840 earlier this week and broke below that level today. U.S. CPI figures released this morning came in stronger than market expectations. While the U.S. dollar and 10-year bond yields had been rising in anticipation of today’s inflation figures, gold had been moving mostly sideways in a somewhat trendless manner. The stronger than forecast May U.S. inflation figures are likely to cause gold to play catch up. In the short term gold prices could rise to around $1,860. The gains could be short lived, with a stronger dollar and high and rising interest rates acting as a headwind to gold prices.
It should be noted that the stronger inflation figures probably are being interpreted by the financial markets, including gold and silver, as pushing the Fed to be more aggressive on increasing interest rates and reducing the cash in the economy via reductions in its bond holdings. These trends and the financial market interpretations of them may persist through the summer, and into the autumn. Consequently, gold and silver prices might be lower over the next few months.
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.
