Dennis Gartman: Gold Could Reach $1650 by Year’s End
Published: Wednesday, 15 Jun 2011 | 2:06 PM ET
With the Fast Traders saying the path of least resistance in the stock market is probably lower, you may be looking for a trade that could go higher. And strategic investor Dennis Gartman, author of the Gartman Letter, thinks the trade is long gold. He told the “Fast Money” team that he thinks gold [GCCV1 1539.10 9.20 (+0.6%) ] could go more than $100 to the upside and hit $1650 by the end of the year.
However, if you watch “Fast Money” regularly, you know that Gartman prefers to play gold in terms of currencies other than the U.S. dollar. “I’ve been an advocate of owning gold,” he said, but not in terms of the U.S. dollar.
Gartman likes owning gold in terms of euro, sterling and yen. If you want to position like Gartman - long of gold in euro terms - then as an America investor, you would go long of gold, short the euro.
As for the overall market condition, he believes stocks will continue to slide.
“I’m not sure that we’re going to have a global recession,” he said, “but clearly we’re having a material slowdown in economic activity.”