Dennis Gartman Says Gold On Verge Of Going Parabolic

Drawing on his experience watching markets, Gartman says gold has the signs of going in to a parabolic move - a bubble, to put it less sanguinely.

Gartman gave two main reasons why it has plenty of room to run even higher. He noted that gold seems to be the "anti-trade", that is, anti-US dollar, anti-Euro, and anti-British pound. While European financial markets continue to face significant challenges from the ongoing debt crisis, the US dollar is beginning to show weakness as poor economic data and worries of global slowdown pile on in droves.

Using his 35 years of experience to his advantage, Gartman also suggested that gold is on the brink of a "parabolic" move, noting that commodities tend to follow certain patterns before such moves. "The market [for a particular commodity] starts slowly and takes several years to build. Then, in the last 10% of the time frame you get 50% of the price movement. I've seen it time after time… And I get the sense that gold is about to do that same thing."

He also said gold shows no sign of investor frenzy characteristic of a full-blown bubble as yet.