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 prices came off sharply today, falling from $1,789.20 / £41.93 to bottom out at $1,758.50 / £41.21 before recovering some. There were no surprises by today’s Fed statement, only that it perhaps reaffirmed current views about the U.S. economy. Market participants are worried about the world over the next several years, but not so much for the next couple of weeks, the very near term.
Prices are expected to remain vulnerable over the next several days, and a firm break below $1,760 / £41.24 could push prices toward $1,750 / £41.01 followed by $1,740 / £40.78. Technicals also appear to be increasingly turning to the downside, at least for the next two weeks.
Notes: Initial Target Prices and Timeframes are just that: Initial. If CPM does not issue a new Recommendation during or after that time it indicates that CPM maintains the posture in the most recent Trade Recommendation. Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM. CPM’s preferred investment strategies use physical, futures, forwards, and options. US$/GBP exchange rate used: 0.73