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 managed to hold above $1,800 / £46.23 for the most part over the past several days, with two forays below that price. This suggests that gold may be forming a base from which to move higher. It appears that more and more institutional investors are increasing their interest in gold in an effort to guard against a stock market downturn. The economic recovery is mixed around world and vulnerable to another surge in Covid-19 in the United States. As many know, gold is used as a hedge against such vulnerable and volatile times. Market participants on the Comex will have to roll their August positions to October or December. There are currently 32.8 million ounces of open interest in the August Comex contract, which becomes deliverable at the end of this month. This may lend some support to prices over the next week or two.
Note: Discretion should be allowed at +/- $2.00 / £0.05 from the target.
US$/GBP exchange rate used: 0.80