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Canada Gold Stocks May Lose Some Sheen Amid Reports Economist Dennis Gartman Cuts His Gold Investments in Half

Canada gold stocks like Barrick Gold (ABX.TO) may lose some sheen today amid reports that Dennis Gartman, the economist and editor of the Gartman Letter who correctly forecast 2008's commodities slump, cut his gold position by half and said yesterday's drop makes him "nervous" that it may keep falling.

Bloomberg said the metal fell as much 1.3% yesterday after earlier this week trading within 1.8% of the all-time high a month ago. It said Gartman cut his gold holdings in all currencies. Gold in euros and British pounds rose to records since last week.

"For the first time in a very, very long while, we are a good deal more nervous than we have been about the trend," Gartman reportedly said in his Suffolk, Virginia-based Gartman Letter. "We fear that yesterday's sharp break that took gold down to US$1,520 in the veritable twinkling of an eye was the harbinger of even more severe weakness that might soon develop."

Gold may fall "swiftly" to about US$1,480 an ounce as early as the next few days, he reportedly wrote. Gold for immediate delivery dropped US$6.27, or 0.4%, to US$1,527.30 an ounce by 1:07 p.m. in London.

Gold has gained 7.4% this year and touched a record US$1,577.57 an ounce on May 2 as faster inflation, Europe's debt crisis, a weakening dollar and unrest in the Middle East and north Africa boosted demand for a protection of wealth.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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