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.