CPM Recommends Buying Gold at $4,105 With a $4,275 Target

CPM Group recommended buying gold at $4,105.30 on a December 2026 COMEX contract, with an initial target of $4,275 between November 5 and 20, and a stop loss at $3,970. It said gold prices have posted higher highs and higher lows since November 3, after rising about $200 from a daily low of $3,879.30 four trading days earlier.

CPM saw the short-term downtrends since late August and late January possibly forming a base, with a set of economic, financial and political factors supporting a return of investment demand. It noted the Fed left rates unchanged at its last meeting, and Democrats won majorities in both the Senate and House in the midterm elections, by a wider margin than expected.

It said the election result can be read as a rejection of the Trump administration and Republican Party's actions rather than an endorsement of Democratic policies, citing polls showing corruption topped issues over the past three months. It added that new lawmakers will not take office before January 3, and that the U.S.-Iran conflict and high inflation continue to support economic and political concerns.

CPM warned that these short-term recommendations carry high risk and potentially high returns, as the complex web of factors affecting precious metals prices is hard to capture. It stressed that the time and price targets are primary, and the recommendation remains valid if no new recommendation is issued within or after the specified period.

What do these terms mean?

COMEX: A market for trading metals futures in New York, where gold, silver and copper are priced.

Futures contracts: Agreements to buy or sell an asset at a set price today, with delivery at a later date.

Stop loss: An order set by an investor to automatically sell a position at a certain price to limit losses.

Price base: A stage where a decline stops and the price begins to stabilize before a possible reversal upward.