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Time Stamp
Prices as of 10:01 a.m. EST 15 June 2023 $1,965.40 (Basis the August 2023 Comex contract).
Recommendation: Sell
Initial Target Price / Range: $1,920
Initial Timeframe: 15 June 2023 to 30 June 2023
Gold prices have been treading above $1,950 for most of the time since the end of May. This support level was firmly broken today, with prices testing an intraday low of $1,936.10 before recovering.
The Federal Reserve held interest rates unchanged yesterday, but suggested that it was ready to raise interest rates once or even twice more should inflation remain elevated. The European Central Bank raised interest rates today to help weigh on inflation in Europe. General prices appear to be taking a turn lower after having been at high levels for perhaps longer than many had expected.
Gold prices are likely to test $1,920 during the remainder of this month. It is possible that market participants step in as buyers as prices head lower and there could be a quick rally back above $1,950, but the overall downward trend for the next couple of months is not expected to be broken. There still are many factors, as discussed in previous trade recommendations, that could provide a boost to prices once more, which should be noted. These may not emerge until the final four months of this year. Meanwhile, barring any major headline news, gold is likely to continue to trend lower in the shorter 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.
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
