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Time Stamp
Prices as of 10:43 a.m. EST 12 January 2023 $1,890.20 (Basis the February 2023 Comex contract).
Recommendation: Sell
Initial Target Price / Range: $1,875
Initial Timeframe: 12 January 2023 to 27 January 2023
Gold prices rallied this morning as inflation data for the U.S. showed still high inflation, despite having retreated year-over-year. Most commodities prices rose as the U.S. dollar weakened. It could be that market participants expect the recent downward trend in inflation to continue and the Fed to slow its interest rate increase tendency. This may be too premature thinking, however.
While headline inflation has retreated at a fairly strong pace, core inflation has not retreated significantly. Inflation for goods has eased, but inflation for services has not and remains in an upward trend. Gold prices may have risen too fast too sharply and could be due for a continued correction, especially if the dollar strengthens once more. There is strong resistance from $1,900 to $1,910.
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.
