Trade Recommendation 9th November 2021

Timestamp (GMT)
9th Nov 2021 14:33 £43.48g
Direction
Buy
Target Price / Range
£43.95g
Timeframe
9th - 19th Nov 2021

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 have firmly broken above $1,800 / £42.76 and have settled above this level for the past couple of trading days. This helps set the stage for potentially higher prices. That said, for prices to reach the above target, prices will need to settle above $1,835 / £43.59.  

As prices moved higher there was a surge in long position building, most notably in the February Comex contract. Total open interest on the Comex was 56.3 million ounces as of 8 November, up from 50.7 million ounces on 3 November. Total open interest on 8 November was the highest level that total open interest has been at since January 2021. The increase in total open interest alongside an increase in prices suggests that investors were building long positions on the Comex.   

If prices are unable to continue rising, this recent build-up in long positions could act as a headwind, with these shorter-term investors liquidating these positions. If prices continue to rise, the beginning of the roll of the December contract could further help to boost 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: 0.74