The only way is down for gold

John C Burford's bearish stance on gold is proving justified, as the price follows his roadmap down towards a critical level of support. Here, he looks at where the market is going next.

In Friday's article, I detailed how the five-wave pattern down from the 19 June high to the 28 June low, followed by the three-wave A-B-C rally to the 3 July high confirmed that the most likely path for gold was down and that it would probably challenge the critical $1,530 support area fairly soon.

Since then, the market is making solid headway to this target, so let's recap what the picture looked like on Friday.

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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.