From today's Gartman Letter...... (8-28)

"The second “thing” that has our attention is the strength in the precious metals markets. We could not help but pay heed to the fact that gold held very, very steady yesterday even during the period when crude as under pressure, when the grains were under pressure and when share prices, for the briefest of moments sold lower. Through it all, gold held steady, and gold priced in currencies other than the US dollar held steadiest of all. As we write, spot gold in US dollar terms is trading $950, and as the chart of gold in US terms at the upper left of p.1 this morning shows, there has been someone or “something” willingly selling gold at progressively lower dollar levels since early this month. They or “it” stopped gold firstly at $970; then again at $960; then again at $957 and again thus far this morning at $950. If $957 is taken out to the upside, we shall have no choice but to be very much impressed.

More important than that, however, shall be gold in EUR and Sterling terms. In EUR terms, gold is trading €663 as we write and a movement upward through €668 would be even more impressive, and be of greater importance, than the movement through US$957 noted just above. In £ terms, the trend is even more definitively upward, and a movement upward through £586… it is trading £584 as we write… would mean that anyone short of gold in £ terms since June of this year is losing sizeable sums of money. Simply put, a real bull market in gold should take place in the terms of any and all currencies. That, we suspect, is about to happen."