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CPM Group has advised clients about short and long-term price expectations since 1986.
They cater mostly to large institutional investors, high net worth individual investors, producers, consumers, governments, central banks, and other entities with large financial exposure to commodities. Mostly through consulting programs, they have published medium and short-term price projections in reports since 1986. CPM now is making its trade signals available to the general public.
Spot trades are focused on one or two-week time horizons.
The average period held from August to November 2018 was 4.5 days. Options positions are designed typically with a one to a five-month horizon. Often, they are closed out early if profit objectives are hit.
Gold prices have fallen as equity markets have recovered. Trade tensions have eased between China and the U.S. as the Trump administration tries to calm concerns amid an impasse on government funding. Investors remain cautious, however, since there has not been anything solid in terms of trade. Current performance of equities, bonds, and commodities could be influenced by a reallocation of assets, which occurs in January. Unresolved political issues remain in both the U.S. and the U.K, acting as a headwind to equities and pushing investors into safe haven assets, similar to what occurred in December.
Gold prices have run up sharply over the past week. Technical chart indicators suggest overbought conditions, which could make gold prices vulnerable to the downside. Prices have support at $1,315. Fundamentals for gold remain supportive for the near term, with ongoing uncertainty about various political issues. In the United States, there is little progress made with regard to finding funding for a Mexico-U.S. border wall. The uncertainty of finding a solution to this issue and the possibility of another shutdown or a declaration of national emergency by Donald Trump should be supportive of gold. Trade talks between the U.S. and China remain on track, but there still are various issues that require resolution and until there is a final agreement markets will remain on edge, which also should be positive for gold. Amid these and other political issues between the U.S. and Russia and Britain and the E.U. gold prices should be supported at current levels. Investors with long positions should hold their positions with a price target of $1,330, fresh long positions can be built if prices slip to $1,315.
Gold moved to trade in a wide range recently, between $1,290 and $1,330. Prices moved higher as market participants rolled their position from the April Comex contract to the June Comex contract. Price volatility has picked up and is likely to continue. While economic conditions appear to be firm, albeit expanding at a slower pace than last year, political headwinds remain. Brexit is still in the headlines in addition to traded issues between China and the U.S.
There is now a head a shoulders pattern formed for gold, which suggest if prices fall below $1,287 or around there then gold could drop to as low as $1,210. This said, there also is much going on politically that could affect the financial and economies that push gold higher, perhaps above $1,350. While CPM is suggesting higher gold prices for these next several trading days, there should also be opportunities to buy on the dips and sell on the peaks, picking price points.
Trade signals released by CPM Group are the result of the collective efforts of CPM’s entire staff and reflect the collective view of market conditions and trends as established and maintained on an on-going basis by the entire group.
He has been with CPM Group since 1999, starting as a Research Analyst. He has developed an extraordinary capacity for developing, pricing, and managing commodities positions for both investing and hedging purposes. He continues to contribute importantly to CPM’s research efforts and is responsible for major client consulting programs related to metals and commodities management.
With more than 13 years of active involvement in researching and analyzing commodities markets, especially precious metals, and developing price projections and views ranging from five days to 33 years. CPM’s is Applied Research, and Rohit and the research team are actively involved in formulating price and trade recommendations.
He has managed the operations. He is highly respected as a precious metals and commodities analyst around the world.
CPM Group Yearbooks each contain definitive and detailed statistics and analysis on the international precious metal markets including:
Disclaimer – Past performance is no indication or guarantee of anticipated future profits, and neither Kitco nor CPM can accept any liability or responsibility for any loss suffered as a result of gold price fluctuations. Gold as a commodity is not a specified investment for the purpose of giving advice under the Financial Services and Markets Act 2000. Therefore this trade recommendation does not give rise to rights to claim compensation under the Financial Services Compensation Scheme. CPM is a registered CTA with the U.S. NFA and CFTC. At times the principals and associates of CPM may have positions in the precious metals, commodity, and equities markets. CPM also manages investment and industrial positions in markets for its clients.