Gold has broken below $4,000 and touched CPM Group's ultra-short-term downside target, and the research firm says prices may stay under pressure through August. CPM points to support near $3,800 but does not anticipate a slide to $3,500, and it sees potential for a longer-term move back toward $5,000 into 2027.
Gold fell below $4,000 and reached CPM Group's $3,975 ultra-short-term downside target, dropping as low as $3,963. In a market update from Jeffrey Christian, the research firm said the metal may stay under pressure through August.
CPM Group points to major support near $3,800 and does not expect gold to fall to $3,500. The firm also examined open interest in the August COMEX futures contract. Roughly 23 million ounces remained open as of the previous day, so many short positions must be closed or rolled into the October and December contracts.
That buying could temporarily lift the market toward $4,200 to $4,300 before another test lower during August.
Christian reviewed weakening economic conditions across the United States, China, Europe, and other major economies, along with persistent geopolitical risks. Because of these factors, CPM Group believes investment demand could strengthen during the final four months of the year, potentially driving gold back toward $5,000 into 2027.
Silver rallied to the mid-$50s before triggering CPM Group's new short-term sell signal. The firm said silver may stay under pressure over the next six weeks before recovering later in the year.
Platinum and palladium, meanwhile, have surrendered much of their earlier gains and continue to face short-term downside risk.
Source: KITCO
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