Gold is surprising the bears (again)

Sentiment is piling up on the bear side. John C Burford explains why gold could be about to spring another surprise.

I will continue the gold story, because it is throwing up some very important trading lessons.

On Wednesday, I referred to what I call the character of the gold market. Every market has its own peculiar characteristics and the longer you study different markets, the more these will be revealed to you.

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(Contracts of 100 troy ounces)Row 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 369,577
Commitments
147,43268,14025,898157,917245,522331,247339,56038,33030,577
Changes from 04/08/14 (Change in open interest: 4,177)
-2,2617,0461,7175,963-8,1755,419588-1,2423,589
Percent of open interest for each category of traders
39.918.47.042.766.489.691.910.48.1
Number of traders in each category (Total traders: 267)
10287675254190178Row 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.