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Time Stamp
Prices as of 11:06 a.m. EST 13 December 2022 $1,821.80 (Basis the February 2023 Comex contract).
Recommendation: Buy
Initial Target Price / Range: $1,850
Initial Timeframe: 13 December 2022 to 30 December 2022
Gold prices rallied this morning, following lower than expected inflation numbers for the United States. Stock markets climbed, the dollar retreated, U.S. bond yields fell, while commodities prices rose. The recent downward trend in inflation in the U.S. suggests that the Federal Reserve may not increase interest rates at an aggressive pace as it had been doing for the past several months. Market may have interpreted the recent data as supportive for most asset classes, given lower inflation figures likely going forward. How low, however, remains to be seen. On a technical basis, gold prices firmly broke and rallied above $1,800, suggesting this could be a new support level. Price volatility should be expected to continue and it would not be surprising for gold prices to retreat somewhat, but continue their upward trajectory, at least in the short term.
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.
