Famous Commodity Investor Speaks Out for Gold: Buckle Up!

The price of gold has rebounded after last week's volatility sell-off. Currently, the shiny metal continues to consolidate around $2,400. However, one market strategist says gold still has plenty of upside momentum.

Dennis Gartman: Gold goes much further than here!

As you can see from Kriptokoin.com**, gold broke a record high of over $2,448 last week. However, it also saw a hard sell-off after that. Famous commodity trader Dennis Gartman says that because of this, gold has short term suffered some technical damage. However, he adds that the precious metal has entered a multi-year bull market. Gartman said, "Gold goes much further than that. "I expect gold to reach $3,000 in the next few years."

The real trade is gold against these coins!

Dennis Gartman says he's bullish on gold because of the breadth of his record run. While investors value gold in U.S. dollars, Gartman points out that gold has also reached record highs against the Swiss franc, Euro, British pound, Japanese yen, Canadian dollar and Chinese yuan. In this regard, Gartman said, "This is much more than the weakness in the US dollar. The real trade is gold against the Yen and the Euro as the US dollar strengthens against these currencies," he says.

Market expectations for the Fed's easing cycle have begun to wane. As a result, the U.S. dollar made significant gains against major global currencies. Expectations are growing that the European Central Bank (ECB) will start cutting interest rates before the Fed. Gartman expects the Fed to cut rates only once or twice this year. He also says that the relaxation will begin only after the US presidential elections in November. However, he adds that gold's rally has gone beyond interest rates and bond yields.

Dennis Gartman notes that he sees an environment similar to the 1970s, when gold rallied as the Fed was forced to raise interest rates to double digits to fight inflation. In this context, the famous investor makes the following comment:

I think the environment we're in is in some ways much worse than it was in the 1970s. There is much more confusion and uncertainty in today's conflicts. This, in turn, will continue to increase the safe-haven demand for gold.

Dennis Gartman notes that as geopolitical tensions increase, the likelihood of the United States using the dollar as a weapon against potential hostile countries may increase. He also notes that the U.S. government is considering confiscating Russian funds. So, he says, some governments see this threat. Because of this, Gartman says, governments continue to move away from the U.S. dollar. Gartman also states that if China wants to use the yuan as a global currency, it will need to keep at least 20% of its reserves in gold.

Meanwhile, Gartman says demand for gold continues to grow. However, he notes that investors' ignorance of this precious metal has prevented gold from rising. However, he still predicts that gold prices will rise further.

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