CPM Gold Trade Recommendation
Time Stamp
Prices as of 4:42 p.m. EDT 5 August 2024 $2,431.20 (Basis the October 2024 Comex contract).
Recommendation: Stand Aside
Initial Target Price / Range: $2,300 - $2,500
Initial Timeframe: 5 August 2024 to 16 August 2024
Gold prices, basis the October Comex contract, rallied from late July into early August, rising from $2,375.10 on 25 July to peak at $2,499.10 on 2 August. Prices have since come off sharply, touching a low of $2,382.80 in the morning of 5 August before recovering. Gold prices have moved more than $100 in a span of two trading days.
This volatile activity is expected to continue. Sentiment is becoming increasingly volatile about financial and economic conditions, which is creating an increasingly volatile market in general. As prices test support levels there will likely be buying opportunities and as prices test resistance levels there will be selling opportunities. This said, the buying and selling windows may be extremely brief given the volatile price activity. So for now, for investors uninterested in using options it may be prudent to stand aside unless one can catch the right buying and selling windows. The buying window for gold may become clearer later this week.
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.
