CPM Gold Trade Recommendation
Time Stamp
Prices as of 11:55 a.m. EDT 23 April 2024 $2,335.50 (Basis the June 2024 Comex contract).
Recommendation: Stand Aside
Initial Target Price / Range: $2,250 – $2,450
Initial Timeframe: 23 April 2024 to 7 May 2024
Gold prices fell to $2,304.60 today, within 0.2% of our previous $2,300 target. Gold at today’s low (so far) has fallen $144.20 or 5.9% from its intraday peak of $2,448.00 on 12 April, seven trading days ago.
The speculative froth continues in the gold market, but the price activity during the first two days of this week suggests profit taking and perhaps some short building since prices broke above $2,400.
There also appears to be reduced concern about political and economic conditions. There has been a reduction in headlines about the conflict in the Middle East and the Russian-Ukrainian conflict. The Chinese economy also is reported to have fared better than expected in the first quarter of the year.
The potential for another price spike higher remains, but possibly not in the next two weeks. Financial and political headlines could turn quickly supportive for gold as they did in March and earlier this month. There also is rising potential for another sharp fall as we have seen over the past two days. A firm break below $2,300 could push prices sharply lower once more, with technical levels of $2,285, $2,260, and $2,250 looming below current levels.
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.
CPM Group wants to thank the following companies for helping us make these short Trade Signals available free of charge, and for their commitment to providing good information in opaque and asymmetrical commodities markets.
Kitco
Metallic Minerals
Stillwater Critical Minerals
Granite Creek Copper
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.