Gold Market Showing Disconcerting Weakness - Dennis Gartman

By Paul Ploumis (ScrapMonster Author)

March 28, 2016 11:47:05 PM

(Kitco News) - The bull market that began late last year continues but not without some very “disconcerting weakness,” says market watcher Dennis Gartman.

In his Monday edition of The Gartman Letter, he writes, “To say that we are not somewhat disconcerted would be wholly disingenuous, for indeed we are concerned, but so long as the trend line drawn remains intact we shall try our very best to remain consistently bullish of gold.” Gartman adds that he is concerned that gold has not only failed to make higher highs, but that the yellow metal has not formed a “top” formation over the course of the past several weeks.

Movements of capital into the gold market remain supportive, however, says Gartman. “As of the end of last week, GLD’s gold holdings have increased by just a bit more than 180 tonnes, or by more than 25% since the end of last year. There are now just under 824 tonnes of gold held by GLD and there are another 193 tonnes held by the smaller IAU.”

The newsletter writer says that his interest in the platinum group metals is growing. “Palladium is inordinately ‘cheap’ relative to gold, as is platinum, with the far more commonly reported platinum/gold ratio having apparently found ‘support’ around the .76-.78 level.

Courtesy: Kitco News