Gold's explosive rally stuns the bears

The gold bears were caught napping when the market turned against them. John C Burford checks the charts.

My last post on gold appeared on 7 December a full two months ago. So why the hiatus? Have I lost interest in it since then? Or maybe the market has disappointed me and veered off the bullish roadmap I have set?

Remember, I had just congratulated the bears who forecast a downside target at $1,050 and achieved it. I always show a great deal of respect to an analyst who can make a genuine forecast (it must always be in advance) that is met.

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(Contracts of 100 troy ounces)Row 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 537,133
Commitments
184,321100,456130,475179,237267,946494,033498,87843,10038,255
Changes from 01/26/16 (Change in open interest: 6,860)
5,811-9,321-7,8827,18526,2645,1149,0601,746-2,200
Percent of open in terest for each category of traders
34.318.724.333.449.992.092.98.07.1
Number of traders in each category (Total traders: 351)
1641101175764264251Row 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.