Trade Recommendation 24th March

CPM Group

Commodities Research

Timestamp (GMT)
24th Mar 19:23 £45.32g
Target Price / Range
£47.82g - £49.19g
25 Mar - 2 Apr

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.

Market volatility has been extremely high. Gold has seen heavy liquidation two weeks ago in futures and other derivative markets. Now it is seeing strong demand for physical metal even as refineries, mints, and other plants in the supply and distribution chain are shuttered by government decrees attempting to limit spread of the Covid-19 virus. The Fed has announced a range of unprecedented monetary moves to try to compensate for the more than $2.5 trillion gutting of U.S. economic activity in the coming second quarter. April Comex is rolling into June in advance of first delivery day next Tuesday, 31 March.

In this environment, gold could rise sharply. $1,750 / £47.82 or even $1,800 / £49.19 are not out of the question given this mix. Prices also may fall sharply during this time.

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