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.
Prices fell sharply today breaking below CPM Group’s previous sell recommendation of $1,775 / £41.60. Gold prices have been increasingly reacting to technical trading patterns rather than fundamental influences in recent weeks. Given that prices were not able to forcefully break above $1,800 / £42.18 on a sustained basis, they quickly sold off as investors took profits from long positions initiated earlier this week.
There are concerns about rising inflationary pressures, but there already have been several central banks raising interest rates. This will help weigh on prices. Rising talk about continued inflation and moves by the central bank to cap inflation is expected to cap gold prices as well. Gold prices are expected to test at $1,750 / £41.01 over the next couple of weeks.
Notes: Initial Target Prices and Timeframes are just that: Initial. If CPM does not issue a new Recommendation during or after that time it indicates that CPM maintains the posture in the most recent Trade Recommendation. Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM. CPM’s preferred investment strategies use physical, futures, forwards, and options. US$/GBP exchange rate used: 0.73