|Dennis Gartman re-enters gold market, turns bullish|
|By Jon Nones|
16 May 2008 at 12:49 PM
SEATTLE (ResourceInvestor.com) -- Dennis Gartman, editor of The Gartman Letter, popular among hedge funds and securities companies, shocked subscribers this morning saying he was re-entering the gold market and “once again to turn bullish of the yellow metal.”
On April 21, Gartman abandoned his long held bullish outlook on gold, noting that the yellow metal “has broken this well defined bullish trend line and it failed ... miserably. It has bounced today, and we shall sell that bounce and exit ... entirely!”
In today’s Letter, however, Gartman said he will buy one unit of gold this morning, and “on a close above $890 ... or if spot gold should trade above $890 for an hour or two to prove the merit of its move... we'll add a second unit.”
“We had hoped to see gold trade down to $820 or so as the late long who've been holding to their position, hoping to be bailed out, are not and are left to liquidate into panic. However, it now appears that the drive downward through $850 earlier this month was sufficient and that order has been restored.
“The recent gold sales from the signatories to the Washington Agreement have been uncommonly small and that has tended to raise our bullish antennae accordingly. Toss into that the fact that the dollar is beginning to weaken once again, and toss in that the future notion that the general commodities market indices are still trending higher and we have the ammunition needed to rejoin the bullish hunt.”