Trade Recommendation 16th Aug

Timestamp (GMT)
16th Aug 14:00 £40.13
Direction
Buy
Target Price / Range
£40.47g
Timeframe
16-23rd Aug

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.

If short-term investors have been taking our advice this week they would have bought at $1,514.30 / £39.92g on Tuesday, 13 August, sold when prices got to $1,534.90 / £40.47g on Thursday, bought fresh long positions later on Thursday at 1,525.40 / £40.21g, and then taken profits later that afternoon when prices popped up to $1,537 / £40.52g. They would now be going long again at $1,522.00 / £40.13g. They would have locked in $32.20 / £0.85g of upside for a 2.1% return over three days.

Meanwhile, problems and uncertainties remain abroad throughout the world. The economic environment clearly is worsening, but also is clearly now worsening as bad as some commentators and equity market participants seem to think.

Political problems are more real and severe, from Hong Kong and Beijing to Washington, Tel Aviv, and the U.K. Parliament. Meanwhile Kim Jong Un feels neglected and upstaged by attention-grabbing events elsewhere, so he is starting to rattle his oxygen-powered sabres. Vladimir Putin must be wandering the lonely halls of the Kremlin wondering how things could go so badly in so many places without any recent direct meddling by him.

This remains a paper market, with little physical gold being bought. Silver, too, for that matter. U.S. Mint gold Eagle sales have totalled 3,000 ounces in the first half of August, compared to an average of 11,500 per month for the full months February through April. (January sales, always a big month, totalled 65,000 ounces.) Silver Eagle sales have totalled 252,000 ounces per month, compared to 1.4 million ounces per month in February – April and 4.0 million ounces in January.

At some point gold prices will break out of the range. It is a 50-50 chance whether the break is upward or downward. Investors need to protect themselves and position themselves to profit from a move in either, or both, directions. While they wait, those short-term profit opportunities are continuing within the range of $1,500 – $1,540 / £39.55g – £40.60g.

Note: Discretion should be allowed at +/- $0.50 / £0.01 from the target.