The Gartman Letter: Yellow Metal Impact — Miners, Euros and India
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.
We note that gold mining shares yesterday were quite strong; secondly we note that gold in EUR terms is showing stronger and stronger tendencies of late. We are and we have long been of the school-of-thought that gold mining shares tend to lead gold itself, both higher and lower. Thus we find it impressive and at least passingly supportive of gold that yesterday gold shares led the rally. Perhaps this is a passing fancy. Perhaps this shall be negated today… or tomorrow… or early next week; but for now that relationship between gold shares and gold’s price obtains and it obtains quietly bullishly.
Secondly, it is important to note that gold predicated in EUR is back above the psychologically important €925/oz. level. Indeed, it is tidily so. However, it shall be demonstrably even more important to pay heed to EUR denominated gold when the trend line…a very formidable trend line indeed… drawn upon the chart this page is broken through from below. That shall require a strong close upward through €955-960 and that is not going to happen today or even later this week. At least, however, the lows have held… at least that.
Finally, we understand that the newly appointed finance authorities in India in the new Modi government are considering putting an end to the tariffs that the last government had imposed upon gold imports. If that is correct… and it does seem consistent with Mr. Modi’s freer market philosophies as we have become aware of them… then gold shall trade sharply higher, and soon. At this point, however, this is merely conjecture. At this point, this is merely rumour.
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