CPM Group Warns of Volatility in Gold Amid Interest Rate Uncertainty

CPM Group has issued a trade recommendation for gold, advising investors to exercise caution due to expected volatility. The recommendation is based on the October 2026 Comex contract price of $4,437.60 as of September 4, 2026. The initial target price range is between $4,320 and $4,670, with a timeframe from September 7 to September 16, 2026.

According to CPM Group, gold and other precious metals have been highly volatile recently, and this trend is expected to continue over the next two weeks as market participants debate U.S. interest rate policy. The upcoming release of August Producer Price Index (PPI) and Consumer Price Index (CPI) data will be closely watched, as it may influence the Federal Reserve's decision on interest rates.

Market opinion is roughly split on whether the Fed will raise rates by 25 basis points or leave them unchanged. CPM Group notes that a 25-basis-point increase would not quell inflation but would signal resolve from the new Fed Chairman, potentially pushing precious metals prices lower in the short term.