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Gold prices rallied late last week amid advserse economic data. Prices topped out at the $1,836.90 / £42.46 before retreating this week. Prices bottomed out at $1,783.10 / £41.21 this week before recovering. Gold appears to want to break out of its recent range. Chart patterns suggest higher prices, but there is firm resistance at $1,840 / £42.53.
Last Friday’s weaker then expected U.S. jobs report, the Beige Book acknowledgement that across the U.S. economic performance weakened in late July through August, slightly tightening monetary and fiscal policies in many countries, and other factors suggest somewhat weaker economic output in the next several weeks, which could bolster investor interest in gold.
September is typically a seasonally strong period for prices. This trend was broken last year due to Covid, but looks to be in place this September and heading into the last quarter of the year, at least as of now. CPM recommended a buy for gold late last week, and with prices lower than they were then, CPM reaffirms its buy stance, especially at around current price levels. Not much has changed economically and financially since prices have been rallying from early August.
Initial Target Prices and Timeframes are just that: Initial. If CPM does not issue a new Recommendation during or after that time it indicates that CPM is maintain the posture in the most recent Trade Recommendation.
Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM.
CPM’s preferred investment strategies use physical, futures, forwards, and options.
US$/GBP exchange rate used: 0.72