Something strange is happening right now in the gold market, and it has commodities investor Dennis Gartman erring on the side of caution.
Gold ended Friday with its biggest weekly drop in two months, and its third straight week of losses. Conversely, the dollar saw its third straight week of gains following comments from New York Federal Reserve President William Dudley. The central banker indicated that markets were underestimating the likelihood of an interest rate increase in June or July.
The backdrop suggests investors may be positioning themselves for higher rates—a possibility not lost on Gartman, who has taken note of some interesting movements in the yellow metal.
"There has been an aggressive seller of spot gold at 1,270 to 1,285," Gartman told CNBC's "Futures Now" in an interview. "Whoever that person or institution is will likely continue to be there until after a rate increase," he added.