CPM Trade Signal – Jun 3, 2022
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Time Stamp
Prices as of 1:25 p.m. EDT Comex 3 June 2022 $1,852.10 (Basis the August 2022 Comex Contract).
Recommendation: Sell
Initial Target Price / Range: $1,840
Initial Timeframe: 3 June 2022 to 10 June 2022
Financial markets shifted concerns from rising interest rates to persistently rising inflation in the face of higher oil prices, rising food prices, and strong jobs growth and other economic indicators.
In this environment gold rose over the past two weeks, touching $1,878.60 prior to the U.S. jobs report today. That was 0.1% away from CPM’s earlier short-term recommendation of $1,880 by today. Gold promptly sold off to $1,849.70 based on the sentiment that the strong jobs data suggests higher interest rates in the near term.
Gold could sell off somewhat more, and a dip to $1,840 in the next week may be a reasonable target. A sharper drop, such as was seen in the middle of May, seems unlikely next week.
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 is maintain the posture in the most recent Trade Recommendation.
Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM.
CPM’s preferred investment strategies use physical, futures, forwards, and options.
Disclaimer – Past performance is no indication or guarantee of anticipated future profits, and neither Kitco Metals Inc. nor CPM Group 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 Group is a registered CTA with the U.S. NFA and CFTC. At times the principals and associates of CPM Group may have positions in the precious metals, commodity, and equities markets. CPM Group also manages investment and industrial positions in markets for its clients.
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.
