Central Bank Buying Has Gold Shorts Trapped – Interview with Ben Davies

Today Ben Davies told King World News that a new buyer has come into the gold market. This buyer is very large and it has trapped some of the shorts in the gold market. Davies, who is CEO of Hinde Capital, also spoke with KWN about short-term price targets. Here is what Davies had to say: “Fantastic action indeed and I think it’s caught a lot of the participants in the market offside. When a market moves, as gold did, from structurally oversold and moves back quite quickly in the medium-term, particularly when a market is perceived to be in a bear phase, people are very keen to take to the short side of the market.”

Ben Davies continues: “Last time we spoke I said the market would chop wood so to speak and that’s what has actually happened is just a chop sideways. We felt that the market was going to break out over the bank holiday on Monday. You often have turning points over these weekends and it is either a resumption or it’s a trend change. But because we had come from a structurally oversold element in the market, we felt there was going to be a resumption (to the upside).

Read rest of the article on King World News

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