CPM Gold Trade Recommendation
Time Stamp
Prices as of 12:43 p.m. EST 14 January 2025 $2,684.90 (Basis the February 2025 Comex contract).
Recommendation: Buy
Initial Target Price / Range: $2,730
Initial Timeframe: 14 January 2025 to 27 January 2025
Stop Loss: $2,650
Gold prices have been moving largely sideways since the middle of December last year, recently breaking out of the $2,600 to $2,700 range to the upside. Prices have since retreated, but have held up above $2,680. With prices at historically high levels, the increased volatility over the past few months, and the wide range of $2,541.50 to $2,801.80, a $260.30 band, since late October 2024, CPM has been issuing Stand Aside recommendations. While we believe prices have continued upside for the medium to long term, it is possible that prices could retreat sharply in the short term while still maintaining the upside overall bias. In the short term, prices could fall more than $100 one week and be back up $100 by the following week. Therefore, these trade recommendations for the very short term should be expected to be gut wrenching for even some of firmest investors. CPM does not like to issue Stand Aside recommendations, but must so for risk sake.
This week, CPM recommends a buy with a stop loss. Not much has changed from previous commentary about economic, financial, and political conditions that are supportive of gold.
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.
