From today's Gartman Letter...... (10-5)

"The gold market was not able to avoid the selling that engulfed the “ag” and stock markets on Friday. However, this morning, now that the dollar is again weaker and now that stock prices are rebounding a bit from their lows, gold is trading firmer and is back above the psychologically important $1000/ounce level. We are more and more content to be long of gold in Sterling and/or in EUR terms rather than in US dollar terms in that we’ve hedged away our dollar exposure and accepted gold exposure only instead. In the past several weeks as gold has either held steady in US dollar terms or has actually fallen, it has risen nicely in terms of sterling and has either held steady or has erred stronger in EUR terms.

As we write, gold is trading £630.25 compared to £627.50. It is trading €687.15 compared to €685.70. As the chart this page of gold in Sterling terms would seem to suggest, new and higher highs lie ahead, with the upward sloping trend rather clearly defined. We’ll sit tight with the positions we have. We see no reason to change at this point."