The gold market sell-off has begun

A sell-off in gold is underway. But ignore the news hype, says John C Burford. Only the charts can tell you why.

Today, I want to show how gold is following my roadmap and how the simple Elliott wave and Fibonacci ideas I use can pinpoint highly accurate targets.

On Friday, gold was trading at the $1,340 level. Then on Monday, it suffered a heavy collapse and traded over $30 lower on the day, and fell further yesterday.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Swipe to scroll horizontally
(Contracts of 100 troy ounces)Row 0 - Cell 1 Row 0 - Cell 2 Row 0 - Cell 3 Open interest: 410,992
Commitments
203,46453,44327,240135,998302,001366,702382,68444,29028,308
Changes from 07/01/14 (Change in open interest: 9,179)
2,177-1,8195,2495546,1027,9809,5321,199-353
Percent of open in terest for each category of traders
49.513.06.633.173.589.293.110.86.9
Number of traders in each category (Total traders: 277)
13267685257216166Row 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.