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(Kitco News) - Newsletter writer Dennis Gartman says he suspects the heavy selling in gold overnight may have been “governmental in nature,” but he is still viewing retreats as a buying opportunity. He cited “massive, relentless offerings of gold” during Asian hours. “It is far too early to know who the seller was and continues to be, but if our intuition serves us…it shall almost certainly be a government of some sort. Time only shall tell,” he says in The Gartman Letter. Still, he looks for support at well-established trendlines. In particular, Gartman, who favors holding gold in non-U.S. dollar terms, looks for support around 1,265-1,275 euros and 1,125-1,130 sterling. When re-establishing long positions recently, he says he kept some “powder reasonably dry” to buy some more when the opportunity presents itself. “The opportunity is striking, but we’ll wait a while longer for a bit more weakness before putting our powder to work.”
By Allen Sykora of Kitco News; asykora@kitco.com
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