The gold price is poised for a big rally

The gold price will zoom higher when the rally catches lurking short traders by surprise, says John C Burford.

It's a fact of life that not all trades go according to plan.

Having a method to tell you when to exit a strategy early in the game is absolutely essential. The earlier you can abandon a false setup, the smaller the loss you will take and that is always and everywhere a good thing.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally
(Contracts of 100 troy ounces)Row 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 410,918
Commitments
171,82189,92943,257154,578243,920369,656377,10641,26233,812
Changes from 03/03/15 (Change in open interest: 5,794)
-8,74025,188-90114,498-19,5474,8574,7409371,054
Percent of open in terest for each category of traders
41.821.910.537.659.490.091.810.08.2
Number of traders in each category (Total traders: 307)
14191825350231192Row 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.