From today's Gartman Letter...... (9-18)

"Turning to gold, of which we remain bullish, it is weaker of course, for with crude falling, and with copper falling, and with the “softs” falling, and with the US dollar rising, it cannot do otherwise. However, in light of all of this bearish news, and in light of the huge long positions built up by the small “specs” among us, the fact that gold has only sold off $8-$10 from its high yesterday is really rather impressive.

We are long of gold in Sterling and EUR terms, and we are so because we wish to hedge away the dollar’s impact upon gold. That has proven wise, for as gold has fallen $10/ounce in the past twenty four hours, it has held steady and in fact has even risen modestly in Sterling terms. As we write, spot gold is trading £618.90 compared to £616.90 yesterday morning at this time. Those who have scoffed at us for buying gold in this manner are rather quickly losing their reason to scoff at us, and indeed are finding reasons to join our thesis. We are bullish of gold and we are bullish of it in terms of other currencies, for the lesson of the era is that faith in all currencies is waning while faith in gold seems to be rising. We are not Gold Bugs here, and we do not like the Gold Bug community for the most part; but for now we are temporary members in semi-good standing… simply standing to the side of the crowd, not joining in full “Bug” regalia nor carrying the “Bug” banner."