From today's Gartman Letter...... (11-9)

"Turning then to the gold market, we note that gold is now trading well above 1100/oz, but it is also trading near to €750. Note again the chart of gold in EUR terms at the bottom left of p.1. Simply put, gold consolidates each rapid rise, almost always in some form of a “triangle,” before moving higher again. Having held support at €650, gold broke out to the upside several weeks ago, and has gone through €700, €725 and is now approaching €750, on its way to new highs, beyond the €800 level achieved earlier this year amidst the chaos of the bear market in equities that ended in the early spring.

The purchase last month, but announced only last week, by the Indian government of half of the gold that the IMF intended to sell this year shall serve as a modest impetus to other central banks who had been considering diversifying their reserves away from US dollars and other currencies into other “hard assets” to do so. To think that there is not peer pressure felt by one central bank from actions taken by another is naïve, for clearly that is so. Whether it is the Chinese who buy the remaining IMF gold, or whether it is a combination of several other central banks who do so is if little real concern to us. All we are reasonably certain of is that some central bank shall likely do so now that India has led the way. Already Sri Lanka has publically said that it is moving in that direction. Others will follow. Of that we are certain."