LONDON (Commodity Online): Dennis Gartman, Investor and newsletter writer , has added to his gold position by buying metal in Japanese yen after an upside breakout on a technical chart for gold/yen.
Gartman re-established a long position in gold against the euro two weeks ago and notes the euro is roughly unchanged since while gold is up sharply.
“In other words, we’ve been able to hedge the dollar exposure in gold out of the equation, having reduced the volatility of the trade in gold while giving away none of the ‘alpha’ of the trade,” said Gartman in The Gartman Letter.
Meanwhile, he said, Japanese officials appear increasingly antagonistic to a stronger yen.
Therefore, Gartman said, “it makes sense to add to our long positions in gold by buying it in yen terms. And so we shall this morning… one unit being sufficient.”
Technically, Gartman said, gold “is breaking out of a consolidation in yen terms that has developed over the course of the past week” and has moved up through upside trendlines.
