The gold price is getting closer to my target

With the gold price approaching his target in the charts, John C Burford analyses where the market may be heading to next.

Gold is at a crossroads. In my post of 20 June, I showed that the previous week's big rally was a short squeeze and moved the market up to the $1,320 area, which is at a major tramline target:

14-6-30-MWT-1

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(Contracts of 100 troy ounces)Row 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 392,388
Commitments
183,43362,57424,959142,864274,471351,256362,00441,13230,384
Changes from 06/17/14 (Change in open interest: 12,545)
21,381-21,183-1,172-14,15939,1236,05016,7686,495-4,223
Percent of open in terest for each category of traders
46.715.96.436.469.989.592.310.57.7
Number of traders in each category (Total traders: 276)
12872665255208167Row 8 - Cell 7 Row 8 - Cell 8

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.