Gold is starting its big rally

Gold is on the verge of breaking through a level of resistance. John C Burford explains why that's a very bullish sign.

As I forecast in Wednesday's post, Yellen of the Fed lit the blue touchpaper and the whole box of fireworks went off in an explosion of volatility. Many others foresaw the increase in volatility, of course. But did anyone see the precise reaction of the markets?

Crude was up, stocks were up, gold was up, treasury bonds were up; everything that moved was up (except the dollar). All of that volcanic eruption was the result of one word that Yellen sort of did not utter: patient'.

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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.