Trade Recommendation 3-7th Jun (update 1)

Timestamp (GMT)
2nd Jun 22:53 £33.41g
Direction
Buy
Target Price / Range
£33.59g
Timeframe
3-7th Jun

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.

Following our last trade recommendation issued on 30th May, Donald Trump threatened Mexico with increased tariffs in an attempt to curb the inflow of immigrants from Central America. This announcement was more an attempt to create a distraction from the speech delivered by former special prosecutor Robert Mueller in the middle of last week than it had to do with immigration. That said, the escalation and threat of escalation of tariffs by the United States on major trading patterns like China and Mexico directly threatens U.S. and global economic growth. Gold responded strongly to this new threat, rising a little over a percent on 31st May.

Gold prices are expected to continue rising in this environment, with the potential of reaching £33.59 per gram ($1,320 / oz) or even £33.71 per gram ($1,325 / oz)during the week. That said, Trump is notorious for changing what he says and in the event that he walks back any of this trade threats, gold prices could quickly retreat, potentially slipping back below £33.08 per gram ($1,300 / oz).