Time Stamp
Prices as of 12:40 p.m. EDT 12 November 2024 $2,603.20 (Basis the December 2024 Comex contract).
Recommendation: Sell
Initial Target Price / Range: $2,550
Initial Timeframe: 12 November 2024 to 26 November 2024
Stop Loss: $2,650
Gold prices have fallen post the U.S. election on 5 November. This was not too surprising, with some of the risk premium related to the election coming off following the conclusion of the event. Some uncertainty was removed from the market. Additionally, the sharp gains in equity, bitcoin, and dollar values coupled with a jump in yields further weighed on gold prices. While this trade is taking a bit of a breather at the time of writing this recommendation, gold prices could see some further downside. CPM Group has not changed its medium to longer term view on gold, with both political and economic factors expected to continue supporting gold prices going forward. That said, in the short term there could be some further weakness before prices stabilize and resume rising.
NOTE: With this issue CPM is adding Stoploss levels to its Trade Recommendations. CPM has tracked the hypothetical returns of its Gold Trade Recommendations since 2018 with and without Stoploss levels added to them. The use of stoploss levels significantly improves the hypothetical returns.
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.