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Gold has risen from $1,912 / £46.03 intraday on Tuesday 25 August, a week ago, to $2,001 / £48.18 this morning. Yesterday’s Trade Recommendation was issued at $1,972.60 / £47.49 and suggested prices could spike to $2,000 / £48.15, and then higher in the next two weeks.
Prices may have another $20 / £0.48 or more to the upside on the short term, the next five days or so.
Prices peaked on 5 September last year, after rising sharply from late June. Despite broad-based optimism prices then fell into late December.
That does not seem likely this year, as we have written. Prices are expected to rise in coming months.
Gold has risen nearly $100 / £2.41 in five trading days, pulled higher by a declining dollar, rising silver moving through the September Comex roll into December (which climaxed 5 September last year), and general political and economic disarray in the United States and the United Kingdom.
These factors will keep investors interested in gold over the next four months. Meanwhile, the scope for prices to fall back, to $1,980 / £47.67 or even $1,950 / £46.95, as September progresses should give caution to short-term investors.
Note: Discretion should be allowed at +/- 0.20% of the price at the time each TR is issued from the target. Recommendations are valid until the target date or a new Trade Recommendation or message is issued by CPM.
US$/GBP exchange rate used: 0.75