CPM Gold Trade Recommendation
Time Stamp
Prices as of 2:19 p.m. EST 10 December 2024 $2,718.30 (Basis the February 2025 Comex contract).
Recommendation: Hold
Initial Target Price / Range: $2,760
Initial Timeframe: 10 December 2024 to 24 December 2024
Stop Loss: $2,680
Gold prices firmly broke above $2,700 today. Prices are likely to continue to move higher overall in the near term. Much of the political and economic uncertainty continues to lend support to gold prices. Also, China’s and the U.S.’s monetary leaning toward a loosening interest rate policy could be seen as supportive of gold prices. The Federal Reserve’s loosening monetary policy might have an effect of a weakening U.S. dollar overall, also supportive of gold prices. Gold prices head toward $2,750, or perhaps test $2,770 from where it is now.
There remains the Consumer Price Index release for the United States tomorrow. This inflation gauge would be the last major inflation indicator before the FOMC decides what to do regarding interest rates cuts, increases, or holding steady. The FOMC meets on 17 and 18 December. The market consensus expectation as of now is for an interest rate reduction, although there are a growing number of financial market participants and economists leaning toward interest rates being unchanged at next week’s meeting.
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.
