Gold Looks For Support
August 8, 2016
Dennis Gartman is editor and publisher of The Gartman Letter, and strategic advisor of the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN). He regularly contributes to AlphaBaskets and lends his institutional insight to educate advisors and investors about commodities and the forex markets, including about trading gold in different currency terms.
Friday was unpleasant to us and today we’ve found little solace for there has been no bounce from Friday’s massive gold liquidation. Gold is trading at what we hope shall prove to be important support at or near to €1200/oz., just as resistance we pointed to…tacitly, not materially…on Friday at €1225 proved even more formidable.
We draw attention to the chart of gold in US dollar terms below, noting that the shorter term trend line for support that might have offered support at $1237-1242 has been broken through to the downside, and that may engender even more selling as we move into North American dealing on Monday.
The Indians and the Chinese have been notably absent from the gold market of late, but the Indians are notorious buyers of weakness rather than of strength, and we suspect that the present weakness will bring Indian buyers back into the market…if not Monday…then certainly as the week progresses.