Buy signal?

Commodities’ gurus like Jim Rogers have been waiting for this buying signal. The autumn is usually the best season for gold prices owing to the Indian religious calendar.

So what happens next? The technical chartists can still see gold going lower but the most important retracement is done.

Is this setting up gold for a rally? The last two times aggregate net long positions were this low, gold rallied 21 and 17 per cent, reported Zero Hedge. But perhaps the net short position is the one we should really be watching.

After 30 years of writing about financial markets you do get some kind of feeling for these cycles of optimism to pessimism, and there is no doubt gold sentiment has been heavily weighed to the downside. So is this the lift-off point?