CPM Gold Trade Recommendation
Time Stamp
Prices as of 11:49 a.m. EDT 19 July 2024 $2,407.50 (Basis the August 2024 Comex contract).
Recommendation: Stand Aside
Initial Target Price / Range: $2,300 - $2,500
Initial Timeframe: 19 July 2024 to 2 August 2024
Gold prices have been very volatile over the past several months, moving between $2,304.70 touched on 26 June and $2,488.40 reached on Wednesday 17 July. This $183.70 trading range has been over a span of three weeks. Today prices had fallen to an intraday low of $2,395.70 before recovering to just above $2,400 as this is being written at 11:50 a.m. EDT. This $92.7 price decline in a span of two days could potentially be repeated in the coming days or weeks, not only on the downside, but also on the upside. Should prices settle below $2,400 today, Friday 19 July, liquidation selling on Monday could be heavy. Or, with more bad political news the price could spike higher once again.
Prices are increasingly volatile in response to the many uncertainties, including in politics, the economy, and in financial markets. The short term, the next two weeks, seems skewed to the downside, but beyond that the outlook seems skewed to the upside. In such a volatile environment, prices could move sharply either way, potentially testing $2,300 and possibly reaching $2,500 once more. Any downside risk is likely to be short-lived, with investors using price softness as a reason to buy gold to hedge against the numerous risks.
What To Do With Gold Positions Now
Investors might position themselves to take advantage of the volatility, potentially buying a strangle at $2,300 and $2,500, or other levels with suitable pricing. Increased price volatility has skewed options pricing, but once volatility eases some it could create better buying opportunities.
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.
Prices as of 11:49 a.m. EDT 19 July 2024 $2,407.50 (Basis the August 2024 Comex contract).
Recommendation: Stand Aside
Initial Target Price / Range: $2,300 - $2,500
Initial Timeframe: 19 July 2024 to 2 August 2024
Gold prices have been very volatile over the past several months, moving between $2,304.70 touched on 26 June and $2,488.40 reached on Wednesday 17 July. This $183.70 trading range has been over a span of three weeks. Today prices had fallen to an intraday low of $2,395.70 before recovering to just above $2,400 as this is being written at 11:50 a.m. EDT. This $92.7 price decline in a span of two days could potentially be repeated in the coming days or weeks, not only on the downside, but also on the upside. Should prices settle below $2,400 today, Friday 19 July, liquidation selling on Monday could be heavy. Or, with more bad political news the price could spike higher once again.
Prices are increasingly volatile in response to the many uncertainties, including in politics, the economy, and in financial markets. The short term, the next two weeks, seems skewed to the downside, but beyond that the outlook seems skewed to the upside. In such a volatile environment, prices could move sharply either way, potentially testing $2,300 and possibly reaching $2,500 once more. Any downside risk is likely to be short-lived, with investors using price softness as a reason to buy gold to hedge against the numerous risks.
What To Do With Gold Positions Now
Investors might position themselves to take advantage of the volatility, potentially buying a strangle at $2,300 and $2,500, or other levels with suitable pricing. Increased price volatility has skewed options pricing, but once volatility eases some it could create better buying opportunities.
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.
