The Gartman Letter: Will Diwali Demand Drive Gold Prices?
Dennis Gartman has been directly involved in the capital markets since 1974 and has been publishing his daily commentary, The Gartman Letter, since 1987. The following provides information from today’s The Gartman Letter.
Regarding gold, firstly we note that the Indian holiday of Diwali… one of the major holidays of the year there and one particularly important to the gold trade… begins tomorrow and runs through the 27th. This year, demand ahead of the Diwali festival has been, shall we say, somewhat disappointing. As Thebulliondesk.com notes, demand this year is up from that of a year ago, but when compared to the years previous to ’13 it is somewhat less than exciting. That said, India has imported twice as much gold this year in September as it did a year ago, and this has happened despite the tariffs applied by the Finance Ministry upon gold imports… tariffs which have been cut by the new Modi Administration but tariffs we had thought would be wholly ended, not merely cut. That said, we are impressed by gold’s strength in EUR terms, and we remain bullish of gold only in terms of the EUR at the moment, as we have for quite some very long while. However, as we have said, we need to see
Gold/EUR push upward through €985-990, and to do so for several hours… if not indeed for a day or two or even three… to prove that move’s real merit.
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