Clown Gartman Says: Don’t Own Gold in This Currency

February 12, 2013 at 09:26

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While still bullish of gold in yen terms, commodities trader Dennis Gartman said Monday that investors should stay away from owning the precious metal in U.S. dollar terms.

“I think gold is in very serious trouble right here – in dollar terms,” he said. “I’m still bullish of gold in yen terms. You’ve heard the story before. I’ve been that way. I’m going to continue to be that way, but gold in dollars has broken down decisively.”

On CNBC’s “Fast Money,” the editor of The Gartman Letter didn’t offer an explanation of why the trade was breaking down.

“I’m not sure whether it’s the currency war that everybody’s talking about or simply technical circumstances, but nonetheless any trend line that you wanted to draw on the gold chart has broken down,” he said.

Still, gold in U.S. dollar terms could still have further to fall, Gartman added.

“I think it has a long way to go,” he said.

The sideways price action, he added, was a sign that “it’s going to go down again.”

“Something’s happening in the dollar-yen move. Something’s happening in gold,” Gartman said. “You do not want to own gold in dollar terms under any circumstances.”