(Kitco News) - Famed newsletter writer and market watcher Dennis Gartman says that gold’s past day’s action can be summed up simply as, “Wow!?.” He notes this in his Friday morning edition of The Gartman Letter. “Even with gold correcting from its highest levels when it traded in the spot just above $1250 for a few brief moments yesterday, it is still stunningly strong as it trades $1240 or so,” he writes adding that “one has to be impressed.”
Gartman adds that the volumes traded on the COMEX the past two days have been “extraordinary.” “[W]ith nearly 400 thousand lots having traded yesterday, which is nearly double that on average over the course of the past two or three months. Further, since peaking at $1250, the volumes on the COMEX have waned considerably and that is as it should be for volume should follow the trend and the trend is clearly upward.”
However in an interview with CNBC on Friday, Gartman says it may be wise to wait on gold. He says it is a “smart move” in the long-term but perhaps, not right now.
"It has been a sporty run to the upside. The public has suddenly gotten a little interested, and that probably is a good reason to say, I bet — I bet — we settle backwards," he told CNBC's "Squawk Box." The famed newsletter writer says he thinks stocks are due for a bounce and gold is set for a correction before the Presidents Day holiday on Monday. He tells CNBC that he expects gold to slide back to $1,215 to $1,225, at which point he might be a buyer.
Friday morning, gold was seeing a corrective pullback after this week’s strong gains that drove prices to a 12-month high Thursday. April Comex gold was last down $7.10 at $1,240.60 an ounce.
By Daniela Cambone of Kitco News; dcambone@kitco.com
Follow me on Twitter @DanielaCambone
