A review of this extract puts it into perspective:
"Gold resistance has been broken at $330 - $336 - $350 and now the 1987 downtrend line at $355 is about to be broken. Once that is broken it is clear sailing to $840 an ounce. The gold price has already breached the 15-year resistance line and will soon break the 20-year resistance line at $470. In late December open interest was 285,668 contracts or 28.6 million ounces, up 91% from August 2001. Since April 2000, non-commercial net short positions have increased from 56,000 to 60,000 contracts."
(Source: Chapman, International Forecaster Jan. 10)