Gold’s big decline off our tramline

Ever the contrarian, John C Burford trades against the herd. Here, he uses his tramline trading method to set his next target in the gold market.

I monitor the financial media and the blogs to try to catch the mood in the gold market.As I never tire of saying, gold is the most emotional of markets and swings up and down much more on sentiment than on the fundamentals'.

In fact, over the years, I have found that most of the time the basic supply/demand datais so confusing as to be of no use to me in predicting market direction.For those that can benefit, there is a pile of such data available, from mine production data to demand for jewellery to central bank purchases/sales.

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OPEN INTEREST: 461,369
COMMITMENTS
195,79543,89846,176153,048348,998395,019439,07266,35022,297
CHANGES FROM 01/15/13 (CHANGE IN OPEN INTEREST: 13,596)
2,840-3,94111,630-2,9627,87511,50815,5642,088-1,968
PERCENT OF OPEN INTEREST FOR EACH CATEGORY OF TRADERS
42.49.510.033.275.685.695.214.44.8
NUMBER OF TRADERS IN EACH CATEGORY (TOTAL TRADERS: 338)
19363776049289163Row 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.