No one saw the gold rally coming – except me

To succeed in spread betting, you must first learn to ignore your ego, says John C Burford. Then follow the charts.

The rebound in gold and commodities has taken many by surprise but not me. This morning, US crude oil has punched up through the $50 level how many foresaw this last month when it was all doom and gloom with Goldman Sachs predicting $22 oil?

Today, I want to cover the gold market, where we have seen a decent rally recently. This rally was preceded by extreme speculator bearishness over recent months.

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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.