What's next for gold?

With recent falls in the price of gold, some traders are shifting their positions, cashing out of long trades and increasing their short trades. But overall sentiment is still bullish. So where might gold be going next? John C Burford looks to the charts for answers.

As I write on 4 July US fireworks day (real pyrotechnics, but not necessarily in the markets), I have noted a significant shift in investor positioning in the gold futures market.

Remember, the Comex gold contract of 100 oz drives the gold pricing mechanism, including the cash quotes. That makes the commitments of traders(COT) reports a crucial piece of information for traders.

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
Hedge Funds226,000 (-16%)60,000
Small Trader67,00024,000 (+18%)

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.