From today's Gartman Letter...... (1-4)

"COMMODITY PRICES HAVE BEGUN THE NEW YEAR STRONGLY, and they are doing so even as the US dollar is also strong. We shall begin the new year by telling our clients around the world that they should get used to the fact that the supposed tie between a weak US dollar and stronger commodity prices has been severed and that it may become the order of the day that commodity prices rise no matter what the dollar does; that is, we can “see” commodity prices rising when the dollar falls and we can “see” commodity prices rising when the dollar rises as well. Simply put, stronger economic environs will keep a bid into commodity prices generally, and that shall trump dollar considerations. Those who grasp this will do well; those who don’t won’t. It shall be that simple.

Thus we note that gold is stronger this morning, rising once again in dollar terms, but rising more certainly in terms of the EUR. Note then the chart of gold in EUR terms this page, done in intervals of eight hours going back into early October of last year. The great rush upward from just below €700 to just barely above €810… a move of nearly 17%... took only a bit more than five weeks. Since then it has corrected, falling approximately €57, but it has taken even longer to correct half as much. This is always one of the signature signs of a bull market, where corrections take longer to correct half as much as the initial rush higher. As we write, gold is trading €771 and is breaking out to the upside from the well defined “triangle” forged on the chart this page. New highs lie ahead and we are to do what we can to remain long of gold in EUR… and Yen, and Sterling terms too for that matter… and to become longer of it when the time is right. The time may be right."