Loading ...Dennis Gartman…
Turning to gold and the precious metals, they attempted to rally Wednesday of last week following the FOMC’s meeting end but that rally attempt failed. But neither had gold weakened materially and as we said here on Thursday and then again on Friday, the longer gold held at or near to $1500-$1505/oz, the more impressed we were and shall be. It was and we are.
Further, Friday’s action was really quite impressive for two reasons. Firstly, it was impressive in light of the weakness in the EUR for on balance a week EUR shall beget weaker gold prices and clearly that was not happening. Secondly, it was Friday and for the past several years that alone has been inordinately “problematic” for gold. The fact that gold had made it through the Asian trading session and had made it into the early European session without weakening had our interest, therefore.
We’d rather publicly exited half or our multi-year long holding position in gold very early last week when gold did not skyrocket on the Saudi/Abqaiq/Khurais news but we did keep the other half for we had to be reminded that “After all, this is a bull market.” And so we said… in heavily underlined fashion so that no one could or would miss what we had said… If gold does make it through the North American session intact, we shall be very impressed and will be forced into re-buying that which we had sold. If we have to pay a few dollars and a few EURs higher than where we sold half of the position last week, we shall consider that as an insurance cost to have insured the veracity of this very long-term trade. It did and we did and as we write gold is trading firmly, thus vindicating our decision. Now we have to decide when to add to the trade yet again.