These trade recommendations are brought to you by CPM Group.
Due to market conditions, the views and positions of trade recommendations can quickly change. We strongly advise you to monitor our published trade recommendations on an ongoing basis.
Gold blew past our previous $1,760 target on 18 May, touching $1,776 before falling back to trade around $1,730 – $1,740 the rest of the day and into 19 May. While prices remain susceptible to spikes lower, the over-riding trend remains to the upside. Optimism about moving toward restarting European and North American economies coupled with continued massive fiscal and monetary stimulus programs have boosted equities and commodities. This optimism may be misplaced and possibly premature. Petroleum now is above $30 per barrel, the Saudis having made their point to the Russian government. Additionally, there are still 25.8 million ounces of June Comex positions that need to be rolled forward, closed out, or delivered into, which should support gold prices into the end of May.
Note: Discretion should be allowed at +/- $0.50 from the target.