Selling is ill advisedDennis Gartman `Joining the Gold Bugs' on Outlook for Inflation
By Claudia Carpenter
Sept. 19 (Bloomberg) -- Dennis Gartman is ``joining the gold bugs'' and betting on higher prices after the U.S. Federal Reserve and Treasury proposed plans to revive financial markets.
``Gold tends to rally during inflationary cycles, and we see the Fed as embarking in precisely that sort of thing,'' Gartman wrote in his daily letter today. ``The Fed shall have to buy Treasury securities from the dealers to make certain that very high-powered money is made available to them, and in the process, it shall reflate the economy.''
Gold for immediate delivery fell $12.39, or 1.5 percent, to $838.45 an ounce as of 11 a.m. in London. Futures for December delivery in New York dropped $54, or 6 percent, to $843.
``Selling is ill advised,'' Gartman wrote.