From this morning's Gartman Letter...... (9-14)

"Gold is trading lower this morning as the trade problems noted above on p.1 at some length erupt, but it is trading lower only in terms of the US dollar. In terms of the EUR or in terms of the British Pound Sterling it is trading for the better and we remain bullish of gold predicated in EURs and Sterling as a result. As we write, gold is trading £601.20 compared to £597.60 when we marked it here on Friday. Further, as we write, gold is trading €683.85 compared to €684.90. Thus, gold may be down in US$ terms, but it is strong or at least stable in terms of these other currencies. Gold is stronger too in terms of the Indian Rupee; in terms of the Russian Ruble; in terms of the Australian dollar… gold simply is strong; it is weak only relative to the US dollar and to the Japanese Yen, and in the latter country, deflation still rages.

We are of course greatly concerned with the fact that the CFTC position figures reported out late last week show that the “specs” have become egregiously long of gold, and were we long of gold in US dollar terms we would be very, very concerned. But at the same time, those same figures show the “specs” to be egregiously long of the EUR and Sterling and most other currencies against the US dollar, striking a balance for our position. Although gold has had and may have for a few more days of difficulty in moving upward through US$1000-1010, it is breaking out to the upside above €600 and we are much impressed. We may have no choice but to put back that which we took off last week, and although we’ll not do so this morning, we are setting the stage for doing so sometime this week."