Analyst: Time To Get Long Gold, Japan
Gold (GLD) still wants to go a good deal higher, commodities trader Dennis Gartman says. Geopolitical risk means gold has further to climb, commodities trader Gartman said Monday.
"I don't really think it's about to run out of steam," he said. "It is a bull market in gold." Gold broke above $1,400 per ounce for the first time since June 7, briefly touching $1,406 intraday.
On CNBC's "Fast Money," the editor and publisher of The Gartman Letter said that he was unequivocally bullish on gold. "Gold is strong in yen (FXY) terms. Gold is strong in euro (FXE) terms. Gold is strong in sterling (FXB) terms. And it's even strong in dollar (UUP) terms," he said. "It is a bull market. It's still going higher. It wants to move, I think, a great good deal higher."
Gartman said that the precious metal could soon hit $1,415 or $1,425 given the escalating situation in Syria, which Secretary of State John Kerry addressed in an afternoon address. "The market took it seriously enough to understand that that was a weak statement," Gartman said.
Continued weak economic data, he added, also made it unlikely that the Federal Reserve would begin to reduce - or taper - its $85 billion-per-month of asset purchases before December.
Gartman also said that he was buying Japanese stocks (EWJ) (NKY). "I went back and bought the Nikkei because I think the Nikkei is probably going to be the place where equity prices will have the greatest devaluation," he said. "I can be wrong."
Courtesy of Bruno J. Navarro, cnbc.com.