From today's Gartman Letter...... (10-13)

"Continuing on to gold, we shall begin our discussion once again by noting that we are bullish of gold… now in terms of Sterling and of the EUR and also of the US dollar. We do not like being bullish of gold for when one is bullish of gold one is bearish of the US dollar and one is betting upon economic illness rather than economic health. We’d much rather bet upon the latter than the former, but at the moment we cannot.

Clearly we are concerned that the gold “boat” is crowded, and when we were on CNBC last week we did indeed recommend selling some calls against spot gold at the $1050 level when spot gold was trading $1025. Spot gold is now trading $1055, $30/oz higher while the calls then trading $19 are now trading $22. In the interim, as gold has risen smartly, the calls have moved against us, but do we care? Not really. Having hedged some of our risk, we were better able to assume that risk and now we sit tight. If gold in US$ terms continues higher, so be it. Shall it? Probably. Are we still net long? Certainly. Need we make any further changes in our position taking? No… not really."