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.
On 17 June CPM’s short-term gold Trade Recommendation was that gold would trade between $1,770 / £40.91 and $1,800 / £41.60 over the next few weeks. We suggested anyone with profits in short-term positions might take profits and stand aside. Gold has traded in that range over the past 11 days. We expect it to continue to do so in the next two weeks. Gold remains vulnerable to ‘another leg down’ should prices break below $1,770 / £40.91, with $1,680 / £38.83 as a key technical downside target. This remains a real possibility should economic expectations improve and some of the inflation concerns dissipate. Both are possible. By mid-July we expect some upward pressures on gold prices, which could lead prices to rise to $1,820 – $1,850 / £42.07 – £42.76 by the beginning of August. So, if prices do or do not fall in the next two weeks, CPM expects to be recommending a short-term buy position by the middle of July. In the interim CPM would continue to advise spot investors to lock in any profits on short positions and stand aside awaiting clarity in the next move. It would advise options-based investors to buy straddles.
Notes: Initial Target Prices and Timeframes are just that: Initial. If CPM does not issue a new Recommendation during or after that time it indicates that CPM is maintain the posture in the most recent Trade Recommendation. Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM. CPM’s preferred investment strategies use physical, futures, forwards, and options. US$/GBP exchange rate used: 0.72