Investors should get out of gold immediately as the metal reaches a technical top and is due for a pullback, says Dennis Gartman, hedge fund manager and author of The Gartman Letter.
In his daily note to clients, Gartman advises them to "rush to the exits" as gold prepares to retreat from a series of historic dollar highs.
While the move out may only last for the short term, he says the metal has "gone parabolic" and should be sold.
"(W)e are traders here, not investors, and traders listen to and watch the market, looking for signs of a changing environment," Gartman writes. "The environment has been changing; violence and volatility are everywhere. We want out. The sidelines look inviting."
Gartman himself, however, remains in a series of gold holdings using currency plays.
He is holding 15 percent gold in his currency portfolio, with equal parts in the euro, yen, sterling and Swiss francs. He also is long 10 percent silver and 15 percent each of Canadian and Australian dollars. He is short 15 percent apiece in euros, sterling and yen.
"We want out...entirely," Gartman tells clients regarding the gold trade. "We wish we'd have been able to send (the letter) to everyone earlier this morning when exiting the trade was wiser, but we've a time table to stand by and we are few hours late in exiting...but exit we must...entirely...upon receipt of this commentary."
Gartman notes that he now will look for other trades to replace his former positions "to which we intend to return in the not-so-distant future."
"As noted recently, perhaps buying steel and buying gold, or buying copper while buying gold, or buying stocks while buying gold...all positions that shall benefit from what we are calling the 'Zimbabwe-isation" of the capital markets in Europe," he writes.
"We are not ready to act yet, but we obviously are considering acting, and those with a somewhat more acute sense of timing and/or a greater sense of trading adventure might wish to venture in this morning."