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Watch then as gold trades toward $1,700 and toward 1,300 (euros), for we fear that under there shall be severe stop losses that shall be touched off…sufficient to send gold perhaps to $1,625-$1,635 and toward 1..

30 Oct 2012

NEW YORK (Commodity Online): Investor and newsletter writer Dennis Gartman suspects that a large number of sell stops in gold are likely building below $1,700 and 1,300 euros per ounce.

Stops are pre-placed orders to buy or sell when certain chart points are hit, often used by traders to exit trades that are going against them.

Gartman describes himself as currently holding a “core” position in gold rather than being aggressively long. He looks for central banks to remain buyers during periods of weakness but not to chase the market higher.

“Watch then as gold trades toward $1,700 and toward 1,300 (euros), for we fear that under there shall be severe stop losses that shall be touched off…sufficient to send gold perhaps to $1,625-$1,635 and toward 1,245-1,255 (eruos)/oz,” he concludes.

Global gold prices are modestly higher in subdued trading early on Tuesday. Some bargain hunters have stepped in to buy the dip, and some short covering is also seen. The major storm that has shut down most of the U.S. eastern seaboard, including New York City, has traders all over the world waiting for the New York markets to reopen.

December gold last traded up $5.10 at $1,713.80 an ounce on the Comex division of the New York Mercantile Exchange. Spot gold was last quoted up $3.50 at $1,713.75. December Comex silver last traded up $0.305 at $32.05 an ounce.


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