Is gold heading for a reversal?

The price of gold is powering on past $1,600 an ounce, and traders have become ever more bullish. But John C Burford isn't so sure. Looking at the charts, he says, there is strong evidence that the gold market is nearing a top, and a correction is due.

A very important point has been reached in the long-range gold charts.

When I last left gold on 4 July: What's next for gold? the market was coming off the highs and tramlines were being broken. It appeared that gold was heading down, at least in the short term.

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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.