The traders are closely watching the action in gold , which sold off sharply this week breaking below its December low of $1360 on Friday before recovering some of those losses. As Guy Adami likes to say gold takes the stairs up and the elevator down and we're certainly seeing those kinds of sharp moves lower right now.
The spot price of gold closed in negative territory on Friday for a fifth consecutive day, its longest losing streak in seven months. The precious metal is now down about 4% on the week. On the charts, gold has breached below two important support levels, namely its 50-day average at $1,382 and – as we mentioned above - its December lows at the $1,360s, explains Adam Sarhan, chief executive of New York-based Sarhan Capital in a Reuters interview.
"At this stage of the game, gold is at a very important inflection point," Sarhan says. How should you position. What should you expect?
For insights CNBC's Fast Money turned to one of the most followed and esteemed commodity traders in the nation, Dennis Gartman, author of The Gartman Letter.
He tells us all the excitement about the declines is a lot of tempest in a pot of tea. "Gold moved from $1430 to $1365 and everyone is screaming how serious the gold decline is. But if a stock went from $14.30 to $13.65 would they be as excited? No. But it's the same percentage move."
That's not to say Gartman thinks declines are over. He doesn't. "Can gold go down more? Can it go down to $1325. Certainly it can," he says.
As you might remember on Monday's Halftime report Gartman said the the downtrend in gold could last through much of January. "It creates fear in the longs and joy in the people who are short," and as a result it generates short-term momentum to the downside. "I wouldn't be surprised (to see) the correction last 2 or 3 weeks." But at the end of the day what Gartman thinks matters most is that gold has been moving from the lower left to the upper right for over a decade.
"Do I think the bull market in gold has ended? Not really," Gartman concludes.
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