Trade Recommendation 13th Aug

CPM Group

Commodities Research

Timestamp (GMT)
13th Aug 16:22 £40.37g
Target Price / Range
13-20th Aug

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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 rose sharply Tuesday, and then fell equally dramatically. The rise reflected investor concerns about the state of global and national economies as well as political developments in Hong Kong, Washington, and elsewhere. The price decline illustrated the speed at which investors will sell gold on better economic news: In this instance higher U.S. inflation and a not-unexpected announcement by the U.S. government that it would delay its most recently threatened tariffs on Chinese products.

Gold prices now are moving strength to strength, with new waves of short-term buying in futures, forwards, options, and ETFs on most price dips. Longer term investors still have not joined the buying spree, nervous about a false start in rising gold prices. Given this shift in the gold price dynamics, based on the plethora of economic and political risks abroad in the world, investors should plan to be long gold, buying on dips and, if they so choose, taking profits on spikes.

Note: Discretion should be allowed at +/- $0.50 from the target.

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Important Disclaimer
Past performance is no indication or guarantee of anticipated future profits and neither Goldex nor CPM can accept any liability or responsibility for any loss suffered as a result of gold price fluctuations. Gold as a commodity is not a specified investment for the purpose of giving advice under the Financial Services and Markets Act 2000. Therefore this trade recommendation does not give rise to rights to claim compensation under the Financial Services Compensation Scheme. CPM is a registered CTA with the U.S. NFA and CFTC. At times the principals and associates of CPM may have positions in the precious metals, commodity and equities markets. CPM also manages investment and industrial positions in markets for its clients.