From today's Gartman Letter...... (8-31)

"Given the dollar’s strength, gold has come down from its highs made Friday morning when very, very briefly in US dollar terms gold traded to $960. As we write it is trading $953.50; however, in terms of other currencies… and especially in terms of the EUR and the British pound sterling, gold is firmer still. We think this reflects the growing urge on the part of the investment and central banking communities around the world to “see” gold as the third most important reserve “currency” just behind that of the US dollar and the EUR. The chart at the bottom left of p.1… the “lead” position in TGL… is of gold prices in Sterling terms. As we write, gold in Sterling is trading £588-589 and a close above £595 would be most impressive indeed. Should it do so, we’ll almost certainly be a buyer of more gold… not today, but likely tomorrow… but again, we’ll buy it in Sterling terms and/or in terms of the EUR rather than in terms of US dollars. The market’s telling us we are right in doing so, despite the fact others find our trade rather illogical. It is not."