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Dennis Gartman says moving to sidelines on gold
May 18, 2010 / 2:55 PM / 8 years ago

Dennis Gartman says moving to sidelines on gold

 * Gartman exiting buy gold in non-U.S. currencies trade
 * Gartman: Gold in euro trade went "parabolic" Monday
 NEW YORK, May 18 (Reuters) - Independent investor Dennis
Gartman said on Tuesday he is abandoning his long-held strategy
of buying gold relative to non U.S. currencies due to rising
market volatility.
 "We shall surprise a lot of people this morning with this
statement, but we wish to rush to the exits entirely with our
long positions in gold versus the foreign currencies," he said
in his daily Gartman Letter.
 Gartman said that the trade to buy gold in euro terms
XAUEUR= had gone "parabolic" on Monday when it soared above
1,000 euros an ounce.
 "Having done so, and with the public now heavily involved,
we want out and are heading for the sidelines," he said.
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 Graphic showing the rise of gold priced in euros:
 link.reuters.com/geh84k
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 The euro EUR= fell to a four-year low against the dollar
on Monday due to a lack of investor confidence in a European
rescue for Greece.
 The common currency, however, rallied on Tuesday.
 Gartman started buying gold in non-U.S. currencies in mid
2009 when gold was still trading below $1,000 an ounce.
 At that time, he said that gold in dollar terms had looked
expensive relative to gold priced in euros, sterling and other
currencies.
 On Tuesday, gold slipped below $1,220 an ounce as risk
appetite recovered in other financial markets. The metal hit a
record high just shy of $1,250 an ounce last Friday on
safe-haven play amid contagion fears.
 (Reporting by Frank Tang; editing by Jim Marshall)






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