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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 and silver prices have risen sharply over the past two trading days. Gold has broken above former resistance around $1,815 / £46.03 and reached $1,866.80/ £47.34 today. Prices are rising as investors react to a wide array of economic, financial, and political uncertainties. The EU multi-trillion-dollar stimulus agreement Monday and discussion for more fiscal stimulus in the United States emphasizes the risks still facing global economies. U.S. belligerence toward China and domestic opponents to Trump add to the nervousness. Investors facing recent strong equity markets even as economic conditions do not warrant such strength are nervous. In this environment, and with large open interest still needing to roll out of the August Comex gold futures contract by next Friday, prices have risen.
CPM projected a spike to $1,920/ £48.69 in its July Precious Metals Advisory. This still seems a short-term target over the one to five weeks. During this time spikes down are likely to be taken as buying opportunities.
Note: Discretion should be allowed at +/- $2.00 / £0.05 from the target.
US$/GBP exchange rate used: 0.79