Gold hits my second Fibonacci target!

The price of gold has rallied to a significant point in the charts, says John C Burford. But where is it likely to go next?

Stock markets have taken centre stage in recent days. But I thought I would cover gold today since it has stealthily made it to my second upper Fibonacci target.

In my last post on 20 January, I noted that it had rallied to my first target in the $1,260 area. I also noted that the bounce off the 31 December $1,182 low appeared genuine and that this low would probably hold for some time.

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John is is a British-born lapsed PhD physicist, who previously worked for Nasa on the Mars exploration team. He is a former commodity trading advisor with the US Commodities Futures Trading Commission, and worked in a boutique futures house in California in the 1980s.

 

He was a partner in one of the first futures newsletter advisory services, based in Washington DC, specialising in pork bellies and currencies. John is primarily a chart-reading trader, having cut his trading teeth in the days before PCs.

 

As well as his work in the financial world, he has launched, run and sold several 'real' businesses producing 'real' products.