From today's Gartman Letter...... (12-18)

"Concerning gold, we remain bullish of gold in EUR, Sterling and Yen terms and although yesterday’s weakness shook our confidence a bit, the major trend remains in gold’s favour. Indeed, in US Dollar terms, gold’s break yesterday to just under $1100 was a retracement back to the bottom of “The Box” that marks the 50-62% retracement of the bull run from the late-October lows AND has taken prices back to a trend line one can cast from the late September lows up through the late October low and on to the lows of yesterday. In other words, yesterday’s lows should be viewed as being sacrosanct.

As we write gold in EUR terms is trading €770, down from yesterday’s best level of €785 but still up from the worst levels made last week and the week before at or near €760. We’ll need a close… soon… above €780 to prove that the bull market is indeed still perfectly intact but we expect that to be but a matter of time, for given the difficulties within the EU currently one must ask what the propensity shall be on the part of such global investors like Abu Dhabi Investment Authority, or the People Bank of China, or the Reserve Bank of India to own or buy European debt at the margin? “Smaller,” would be our thought, while “Larger” would be their propensity to own gold as a reservable asset."