The Bow Tie: Au Will See a Short Covering Rally

“A short-covering rally is in store for gold after its 28 percent drop in 2013, says legendary investor Jim Rogers, chairman of Rogers Holdings.

Already, the precious metal has gained 4 percent this month, with the February Comex contract trading at $1,241 an ounce Wednesday morning.

Investors sold gold last year as anticipation that the Federal Reserve would taper its quantitative easing quelled worries about inflation.

“There are huge shorts that have developed in precious metals,” Rogers explains, according to The Economic Times of India.

“So, it’s overdue for a rally. We had a big drop in 2013. Everybody got negative, everybody got short. So, we are going to have a rally.”

But the upswing is unlikely to last, Rogers notes…..”

Full article