From today's Gartman Letter...... (9-15)
"The gold market is steady to a bit firmer, with obvious psychological resistance in gold priced in US dollars between $1000-$1010. How long that resistance can avail itself is open, of course, to debate, but we suspect that eventually that resistance shall be overcome. We prefer, however, to trade gold predicated in Sterling or EURs, for we see this is a “hedged” position, capable of rising to new highs should gold push higher as we think it shall, but capable of defending us from material assault should the dollar stage a short covering rally of consequence that would have a material, and clearly deleterious effect upon gold itself. As we write, gold is trading £600.35, down ever-so-slightly from £601.20 yesterday morning at this time, but still clearly moving from the lower left to the upper right on the charts, and even more clearly breaking to the upside through the huge “triangle” correction pattern that has taken nearly nine months to complete. The longer such consolidations or corrections take, the more powerful shall be the move when the consolidation/correction is resolved. In this instance, we can “see” gold in Sterling terms trading to and beyond £700 and on toward £750 over the course of the next several months. Patience shall be in order… something far too few commodity traders have these days."
No doubt the "stars" are lining up!
RUF
