Not long ago, Dennis Gartman was a raging gold bull (he was particularly fond of the long gold/short euro trade, which worked fabulously for a while, and though we don’t know whether he reversed course on that one, he has said the euro rally has taken him by surprise).
Anyway, he’s now turning cautious on gold.
“. . .we shall urge the greatest of caution upon everyone, everywhere regarding gold. It is not just over-extended to the upside; it is hyper-extended. It is not just overbought; it is hyper-overbought. We cannot strongly enough urge everyone to avoid buying gold here and we shall go so far as to suggest that those who are long begin the process of quietly heading for the exits and to reduce their positions to the most minimal ‘insurance’ positions possible. Everyone should have perhaps 5% of their liquid assets in gold, but at this point anything beyond that level is excessive.”
–Dennis Gartman, September 29 2010