From today's Gartman Letter...... (11-12)

"Moving on to gold, we remain bullish of gold, but as we have said for weeks we are bullish of it not in US dollar terms so much as we are bullish of it in terms of other currencies, including the EUR, the Yen and the British Pound Sterling. Yesterday, comments by Mr. Mervyn King, the Governor of the Bank of England, suggesting that he was amenable to continuing the policies of quantitative easing sent Sterling plunging, and sent gold in Sterling terms soaring. So too followed gold in EUR terms.

We’ve advocated owning gold in foreign currency terms for quite some while, wanting to hedge out to the best of our ability the exposure that one has to the dollar when one is long of gold in simple dollar terms. That has proven wise, for when gold has tumbled from time to time, the dollar has strengthened, and the movement in our favour by the currency portion of this trade has allowed us to breathe a bit easier and sit a bit tighter when others are tossing their gold positions overboard. As we write, with spot gold having traded above $1120, gold in Sterling terms is trading £675, new multi-month highs. We’ll sit even tighter then. There’s nothing else we can do"