CPM Gold Trade Recommendation
Time Stamp
Prices as of 12:05 p.m. EDT 7 May 2024 $2,321.60 (Basis the June 2024 Comex contract).
Recommendation: Stand Aside
Initial Target Price / Range: $2,250 – $2,450
Initial Timeframe: 7 May 2024 to 21 May 2024
Gold prices have been trending lower overall since peaking at a record $2,448.80 on 12 April. Prices recently fell to touch a low of $2,285.20 on 3 May before recovering. Prices have been consolidating since late April, with the potential to break in either direction. Economic indicators point in both directions: Disinflationary data points as well as economic indicators suggesting more persistent inflationary pressures, coupled with signs of weakening economic conditions countered by still strong indicators.
Central banks have shown resistance to buying at record high prices, reducing their monthly acquisitions sharply.
CPM expects prices to head lower, but there could be another round of unexpected headline news that could push prices sharply higher once more. Prices could continue to move in a wide range. Should there be no market moving news prices would be expected to trend lower and retest support levels.
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
