Hermit Effect on Gold
September 11, 2017
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.
Gold is weak and not because of the limited nature of Irma’s destruction but because North Korea has apparently “buckled” on its threats to have tested yet another missile over the weekend which would have celebrated the founding of the Hermit Kingdom. There were very real fears that Kim would test the mettle of the West with another missile test over the weekend, but he has chosen to stand down regarding drought and starvation in the Hermit Kingdom.
Nonetheless, the trend is still toward higher gold prices, not lower, although we do not… and will not… preclude nearby gold futures to make their way back toward $1315-$1325 over the course of the next several trading sessions. Indeed, not only does that seem reasonable, it seems almost likely and would return the market to a sense of technical “health” having gotten a bit over-extended to the upside late last week on “Irma and Kim” concerns.
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