From today's Gartman Letter...... (11-2)

"Finally, we remain bullish of gold, for we are long of it in terms of EURs, in terms of the British Pound Sterling and in terms of the US$. Good bull markets in gold are always bullish in all currency terms, for if gold is indeed “good” it is good as the currency of choice… as the “reserve” against all other “reservable assets.” That is gold’s lot in the world of finance, and it is for that reason that we own it in terms of various other currencies.

As we write this morning, gold is strong in Sterling and EUR terms, and is stronger in terms of the latter than the former. At the moment, spot gold in EUR terms is trading €708.40, up from €704.85 Friday morning when we marked things to market. As the chart the page previous makes clear, the trend is clearly upward, but €700 seems to be an “anchor point” around which the market has wanted to trade for the past several weeks. Unless something wholly unexpected happens in the course of the next several days, we look for the major trend in gold’s favour to reassert itself; for €700 to be left comfortably behind and for new highs above the highs made earlier this year at or near €790 to be taken out.

Regarding gold in Sterling terms, when Sterling was breaking materially from August through mid-October, gold priced in Sterling rose as high as £675. It has since corrected back toward €625; however the major trend remains strongly upward, or as we like to say, “From the lower left to the upper right” on the chart. We suspect that support for gold at £625-£635 has been and shall continue to be quite strong; that new highs lie just ahead and that those not already long of gold in Sterling terms would do well to become so."

Dan