Monday, November 16, 2009
While not being comfortable with the current gold trade, Dennis Gartman, founder of The Gartman Letter, told CNBC Monday that the price of the precious metal will “continue to go up until it stops.”
“It is a gold bubble,” Gartman told CNBC. He called the trade on gold “mind boggling,” but also said he is currently long — or betting gold will go higher.
Gold hit a fresh record high above $1,130 an ounce early Monday as the dollar fell against other Western currencies.
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Gold’s Friday low of $1,102 an ounce is the floor, according to Gartman. If it falls below that mark, he suggests investors should “head to the sidelines.”
The trend for the dollar is “still down” and will continue, Gartman said. It’s an “unbelievably crowded trade,” he added.
This article was posted: Monday, November 16, 2009 at 10:41 am