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.

Gold prices have spiked higher as global financial markets continue to be roiled by the worsening US China trade war, the emerging currency war, and a range of other political and economic problems. Stock markets have fallen sharply.

This is the kind of market situation in which CPM would use options, buying both a put and a call to take advantage of the increased potential for volatile moves in both directions. These Recommendations focus on non-option purchases, however. Given that, CPM would take profits at current prices around $1,508 / £39.76, with the expectation that we can re-enter fresh long positions on any short-term pull back in prices below $1,500 / £39.55. Prices may come off, briefly, to as low as $1,490 / £39.28. At that point CPM would re-establish a short-term long position. We would not go short since you never want to stand in front of a racing train.

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