CPM Gold Trade Recommendation
Time Stamp
Prices as of 11:18 a.m. EDT 20 June 2024 $2,371.90 (Basis the August 2024 Comex contract).
Recommendation: Buy
Initial Target Price / Range: $2,400
Initial Timeframe: 21 June 2024 to 5 July 2024
CPM has had a “Stand Aside” short-term Gold Trade Recommendation in place since 23 April. Prior to that, when gold was at $2,381on 15 April, we had issued a “Sell” recommendation with a target of $2,300. Gold had dropped to $2,304.
The Stand Aside recommendations since 23 April reflected what CPM had anticipated would be a period of extremely volatile gold prices. That has happened, with gold prices ranging from $2,285 on 3 May to $2,454.20 on 20 May. Gold subsequently fell back to $2,304 once more on 7 June and 10 June, and is trading around $2,350 this morning.
Gold prices are projected by CPM Group to rise over the next week or two. A wide range of political, economic, and financial market issues are likely to push gold higher, toward $2,400 if not $2,450 during this time. A stronger dollar is not likely to be a negative for gold: The dollar and gold are both expected to find strong investor demand as the safer currencies to be in. Silver prices are expected to exhibit strength next week ahead of the July Comex futures delivery period starting on 28 May, which may help pull gold prices higher.
The increase may be short-lived, however, and dissipate beyond the first week of July.
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.
