Dennis Gartman Sits Tight On Gold
New York (July 1) Popular newsletter writer, Dennis Gartman says he sees “absolutely” no reason to change his thoughts on the yellow metal, which was headed for its fifth weekly gain on Friday.
"[Gold and the other precious metals] are very strong indeed and we see absolutely no reason to change our thesis…a thesis we’ve been embracing for four years in the case of gold priced in yen and for the past two and one-half years in the case of gold priced in EURs,” Gartman says in his Friday edition of The Gartman Letter.
Gold rose 1% on Friday, with spot gold rising to a session high of $1,338 an ounce, and was 1.1% higher at $1,336.17 an ounce. The metal gained 8.8% in June, its biggest monthly rise since February.
“As we write, [gold] is now trading upward once again through the technically and psychologically important €1,200/oz level and indeed the only change we wish to make is that we shall consider skewing the trade a bit in favor of the EUR and away from the yen for although both monetary authorities…the ECB and the Bank of Japan…have no choice but to be even more expansionary than they are, the propensity on the part of the ECB to be so 'trumps' that of the Bank of Japan for the moment.”
Gartman adds, “[W]e see nothing to do but to sit as very tight as we are able, but further being prepared to add to our long silver/short gold position that has moved violently in our favor these past two days. We’ll not add to the trade today, however, requiring some modest correction before we take further action.”