Dennis Gartman – ‘Gold’s Decade-Long Bull Run is Dead’

Posted by Gary Tanashian via

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Bernanke delivered the fatal blow to gold’s ten year bull market, according to Dennis Gartman.   Gold has been in bear territory since the summer of 2011, when it topped out above $1,900 an ounce, with the latest post-FOMC sell-off inflicting irreparable technical damage, he says.

Well close Dennis.  But let’s fine tune a little:  Unbridled panic-fueled momentum drove gold unsustainably higher as it took a mini blow off and very predictable correction.  Gold is not broken in its secular bull market (and not necessarily even the cyclical one out of 2008) by any rational technical parameters.  Not as of this writing and thus, not as of your little Forbes piece with the alarmist headline.  ‘Irreparable technical damage’ Dennis?  Where?

Technical damage could come about but here’s the thing, it has not yet come about.  Why the haste to make such a call good sir?  And you Forbes; why pile on now when everyone from Buffett to Bernanke himself is mowing down the poor, under-armed gold bugs?  If gold is so marginalized, why the big and seemingly coordinated negative ad campaign?

The time to have negative feelings was late last summer.  The time to think like a capitalist is now.

UBS’ Edel Tully adds that markets’ no-QE-for-now realization will push gold even lower, probably down to $1,550 an ounce over the next month.

Oh my… all the way down to 1550?  While that’s a little under my initial support parameter, it does not break the bull market.  Next…

….read more HERE