From Today's Gartman Letter...... (11-24)

"Turning as we do at this time to the gold market, we are and have been bullish of gold, but have tended to focus our attention to gold not in US dollar terms but in terms of various other currencies, hoping always to hedge out the dollar risk attendant to a long gold position. In the past few hours that has proven quite wise for gold is down from its highs in US dollar terms, but it is at or near its highs in terms of the EUR, Sterling and other currencies.

We are still impressed, however, by the fact that spot gold “gapped” higher yesterday and that “gap” remains intact this morning as we write. There was some talk amongst the very “True Believers” in gold yesterday that the “organisation” that had sold that huge number of $1200 calls that were to expire yesterday might be under duress, but when spot gold failed at $1175 midmorning in N. American dealing it was clear that $1200 would not be breached to the upside. Those who’d bought gold hoping to see that call seller put to test then ran to the sidelines, off-loading their gold in the process. Even so, gold has held firmly and we remain much impressed noting that with gold trading $12/ounce below its highs, it is at or near its highs in EUR terms, Sterling terms, et al."


(From Gartman's 'recommendations' section, his open gold positions as of this morning)


Long of Two Units of Gold in EUR terms, Two Units in Sterling Terms; One Unit in US$ Terms and One Unit in Yen terms:

We bought gold August 5th at €671 and again yesterday, Nov. 23rd at €778.20 for an average of €724.60. Given that gold is trading €782.55 this morning, up nicely from €787.20 yesterday morning, our position is well insulated from random market noise.

Further, we bought gold in Sterling term at £594, also back in August, and we also added to it yesterday, Monday, Nov. 23rd at £702.60 for an average of £648.30. It is this morning trading £707.00, up nicely from £702.60 yesterday.

We added a position to our gold, this time in US$ terms several weeks ago at or near $1018 and with spot gold trading $1168.00 this morning we are reasonably well ahead on the trade. Finally, we bought a unit of gold in Yen terms last week. As we finish, gold is trading ¥103,545/oz. compared to ¥103,715 yesterday.