Dennis Gartman piled on gold during a recent interview with CNBC saying that the price per ounce is most likely headed down.
Gold is currently trading at $1,390 per ounce as of 20:59 UTC, near its 52-week low US$1,360.60. The 52-week high is US$1,794.10 per ounce.
“We’ve broken all trend lines. We’ve broken all support. Gold in dollar terms is a broken commodity, and it’s probably going to head lower, not higher,” said the influential newsletter writer.
He noted that gold’s high of $1,900/oz, back in the summer of 2011, is now two years behind us.
“Here we are at $1,380 and that’s quite some distance down.”
The trend does not look pretty.
“The first sign of support may be $1,200. If it starts to break under $1,200, I am sorry but there is not much support until you get to $1,000.”
Gartman wondered if gold’s best days is behind us.
“Like an aging athlete, it just keeps faltering. It can’t quite get across the line to catch that pass any longer.”
Gartman says the conditions should be good with every government in the world expanding its balance sheets.
“But the oldest rule in commodity trading is that when something can’t rally when its bullish, it’s a bear market.”
Dennis Gartman has been publishing the Gartman Letter since 1987. He appears frequently on financial television.
Creative Commons image by Betsy Weber