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 is testing $1,808 / £42.37 as this is being written. If prices stay above $1,800 / £42.18 it could lead to fresh long buying and stop-loss liquidation of shorts, which could take gold prices briefly to $1,810 / £42.42 or $1,818 / £42.60.
However, if gold fails to mount $1,800 / £42.18 convincingly new selling could take prices back down, with technical targets at $1,780 / £41.71, and lower.
Financial markets have been trying to understand how an economy might be expanding while it has issues to deal with. That should not be a difficult concept to grasp, since it happens constantly, but financial markets sometimes are collectively baffled by the simplest things.
Gold is no exception, having been range-bound for a few weeks. It has been registering higher lows since the late September sell-off, however, suggesting upward momentum may be greater than the offsetting impulses to short gold.
Gold remains highly vulnerable to another sell-off, but the momentum is toward higher prices.
Notes: Initial Target Prices and Timeframes are just that: Initial. If CPM does not issue a new Recommendation during or after that time it indicates that CPM maintains the posture in the most recent Trade Recommendation. Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM. CPM’s preferred investment strategies use physical, futures, forwards, and options. US$/GBP exchange rate used: 0.73