From Today's Gartman Letter...... (9-4)

"Turning then to gold, what can one say other than “WOW!” Gold has gone skyward, and it is now the topic de jour everywhere. That concerns us, for there is a very direct correlation between the numbers of requests we receive to do television, radio or print interviews regarding gold and the propensity for gold to tumble from those highs. We can say that the number of interview requests is not nearly as high now as it was last year when gold first moved upward toward and through $1000, so gold still has some way to rise this time if the past is prologue to the future… and we think that it is. But it is a bit late to be establishing new positions, and we’d be quite cautious rather than enthusiastic about owning gold… especially in terms of US dollars.

We own gold in terms of Sterling and the EUR, and we are far more comfortable with those positions than we would be were we long of gold only in US dollar terms. As we write, gold is trading £603.30 and €691.30 compared to £601.35 and €687.60
respectively yesterday. Owning gold in terms of other foreign currencies gives us protection should the dollar begin to strengthen, which would tend, all things being otherwise equal, to weaken gold prices, as rumours and rumours of rumours sweep through the market. As Sgt. Esterhaus used to say to his men before he sent them out into the mean streets of Chicago in Hill Street Blues, “Be careful out there.” So, “Be careful out there!”.