Market Nuggets: Gartman: Rise In Gold Prices Has Gone 'Parabolic'
22 August 2011, 8:30 a.m.
By Kitco News
kitco.com
(Kitco News) -- Investor and newsletter writer Dennis Gartman says gold has gone “parabolic” but that he remains “aggressively” long in the market. In The Gartman Letter, he notes that gold nearly touched $1,900 an ounce overnight after having topping $1,800 as recently as late last week. Also, gold earlier topped 1,300 euros after passing 1,250 late last week, and the metal has broken 1,150 sterling after topping 1,100 last week and 1,000 as recently as two weeks ago. “Gold is strong in any and all currency terms and it is now entering that stage when prices go ‘parabolic,’” he says. Still, Gartman says, “we are really quite aggressively long, as usual, in non-U.S. dollar terms.” He added a new wrinkle to his long gold position late last week: “buying ‘near-er’ month gold future(s) and selling those more deferred, for if Venezuela does stand for delivery of gold and if there are any concerns about having that gold delivered, we can imagine a time when the gold futures market goes dramatically backwardated.” Venezuelan President Hugo Chavez ordered his country’s gold reserves held abroad to be returned to Caracas and/or other vaulting centers that he is more comfortable with. |
