From today's Gartman Letter...... (11-4)

"Moving on to the gold market, the news yesterday was indeed huge as the International Monetary Fund reported that it had sold, to India, 200 tonnes of the 403 tonnes it wants to sell this year. In one major transaction the overhead supply that has weighed all too heavily upon the market far too many times was all but removed. All that now remains is the prospect for the other 203 tonnes to be sold, with obviously speculation upon China as the eventual buyer. There really is no need to give any further explanation as to gold’s strength for this purchase was all that one needs to understand about gold’s skyward flight.

We remain bullish of gold in terms of the British pound sterling; in terms of the EUR; in terms of the US dollar and now we are willing buyers of gold to add to our position, but this time we shall do it in terms of the Japanese Yen. As we have said countless times, real bull markets in gold have gold rising in terms of all major currencies. To that end it is only logical that we shall buy gold in Yen terms… and so we shall, upon receipt of this commentary.

Should we not have done this earlier? Of course we could have, and perhaps we should have, but we are doing it now in light of the huge leads we have in our other three positions. We are following our own rules: doing more of that which is working. Owning gold is working, and hedging away the US dollar exposure while doing it seems meet and right."