Dennis Gartman is getting very bullish on gold. And his new price target is $1915, sort of.
Gartman is the author of the widely read The Gartman Letter and an esteemed commodities strategist; his insights inform some of the biggest investors.
And after parsing through the recent Fed statement and ECB commentary he's confident that, “Central banks of the world are committed to easier monetary policy and injecting reserves into the system. That should drive gold higher,” he says.
"Given the problems don't seem to get resolved, I think gold has a lot of upside."
But rather than play gold in US dollars, Gartman likes to play gold in euro terms, on the theory that Europe’s financial woes will drag down the currency (against the dollar) and therefore when he sells out of his position – gold will fetch incrementally more euros than dollars.
Gartman tells us, he expects gold to climb to 1450 euro per ounce. That’s the level at which he’d take profits. Now, Gartman didn’t come out and tell us exactly – but if we did the math and at 1.32 euro/ 1 dollar that would make Gartman’s target price $1915.
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