Gold prices suffered a sell-off on Friday after stronger-than-expected U.S. jobs report led to expectations of a U.S. Federal Reserve rate hike. But nonetheless, some analysts are still extremely bullish on gold prices
"I have been bullish on gold in non-U.S. dollar terms for years now," Dennis Gartman, Founder, Editor & Publisher of The Gartman Letter told CNBC on Monday.
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"In terms of yen for four years, in terms of euro for 2.5 years and quietly in terms of U.S. dollar I have been neutral to slightly negative on gold."
Gartman said that while Friday was not a great day for him, he is still up nearly 6 percent for the year and will continue to remain bullish on gold in non-U.S. dollar terms. "The odds of monetary authorities in Japan and Europe becoming expansionary than the monetary authorities in the United States are demonstrably high and therefore I am going to earn that direction."
U.S. job creation crushed estimates in July as the economy added 255,000 positions, according to the Labor Department. Economists had estimated an increase of 180,000.
Following on, Gold prices lost nearly 2 percent in Friday's session. The precious metal slipped to a one-week low on Monday, down to $1.331.6, but up by more than 25 percent year-to-date.
"Gold traders reduced their positions and took some profit off the table as the odds of the US increasing the interest rate have become stronger. However, it is still very vague that when that take will place as the upcoming U.S. elections do have massive elements of uncertainty," Naeem Aslam, chief markets analyst at ThinkForex told CNBC via email.
With uncertainty about the timing of a rate hike in the U.S. and a fairly stronger economy looming, Gartman thinks buying gold in euro terms is better.
"I am far more amenable to be a buyer of gold especially in euro terms because I think the euro is going to continue to get weaker and the monetary authorities there have no choice but to be expansionary."
Meanwhile, expectations that the Fed will look to hike rates in its September meeting has been driving sentiment in the market but many analysts think that the Fed will not make any decision during the U.S. Presidential campaign.
"It would be the first time they would raise rates during a Presidential campaign and I think they would find excuse not to do it," Lothar Mentel, CIO at Tatton Investment Management told CNBC.
That leaves the Fed with a December option which Gartman thinks the Fed will not exercise since it would be around the Christmas period.
"The Fed does not like to raise interest rates in December. They do not like to be Scrooge for Christmas but they also don't want to do something the days before the election in November."