CPM Gold Trade Recommendation
Time Stamp
Prices as of 9:18 a.m. EDT 12 July 2024 $2,407.10 (Basis the August 2024 Comex contract).
Recommendation: Buy
Initial Target Price / Range: $2,425
Initial Timeframe: 12 July 2024 to 26 July 2024
Gold prices fell to $2,396.10 today after having reached 2430.40 yesterday on a price rally. Gold prices are managing to hold up, supported by rising concerns and uncertainties about political conditions worldwide. As the United States elections draw closer support for prices would be expected to build.
Lower than anticipated U.S. consumer and producer price increases also are supporting higher precious metals prices, as market participants view lower inflation as a leading indicator of lower prices. This is counter-intuitive for those who view gold and silver as inflation hedges that rise and fall with inflation, but this is the current market reality.
If prices are able to hold above $2,400 this could be a base from which prices head higher, with the potential to set new record highs later this year. The summer lull that usually occurs around this time of year may be shallow if it does occur or it could have just passed when prices fell toward $2,300 in June. Technical strength in prices continues to build.
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.
