U.S. gold futures and spot gold dropped below $1,600 an ounce, less than a week after it broke below its 200-day moving average.
For Gartman, that number carried a fair amount of weight.
“The fact that we’re underneath that makes it pretty difficult for even the most beginning technician to want to stand up and want to be a buyer,” he said. “I will let it go lower if it wants to.”
Gartman said that the reasonable strength of the U.S. dollar made gold a less attractive bet.
“As long as that continues, it’s hard to make a bullish case for the gold market,” he said.
“Gold is actually the second-most important reservable asset in the world. The dollar is still the No. 1 reservable asset.”
Recent swings in gold prices have led to predictions that gold prices would fall to $1,000 or rally to $2,500 next year.
The Japanese yen might also be worth watching in the near future, he added.
Gartman said that if gold remained under $1,600, mining companies might look to reduce their exposure.
“I’d be out selling 5 or 10 or 15 percent of next year’s production just to hedge some, just in case,” he said.
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Trader disclosure: On Dec. 19, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Adami owns C; Adami owns GS; Adami owns INTC; Adami owns MSFT; Adami owns NUE; Adami owns BTU; Adami owns AGU; Terranova owns TRLG; Terranova owns SWN; Terranova owns SU; Terranova owns VRTS; Terranova owns IBM; Terranova owns LQD; Terranova owns MUB; Terranova owns EMC; Terranova owns CSCO; Terranova owns AXP; Terranova owns SBUX; Kelly is short UBS; Kelly is short BCS; Kelly is short SLX; Seymour is long KRE; Seymour is long IWM; Cortes is long SO; Cortes is long TSN; Cortes is long SVU; Cortes is long Treasuries; Cortes is short AAPl; Cortes is short XRT; Cortes is short Crude;
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