Sept. 19 (Bloomberg) — Dennis Gartman is “joining the gold bugs” and betting on higher prices after the U.S. Federal Reserve and Treasury proposed plans to revive financial markets.

“Gold tends to rally during inflationary cycles, and we see the Fed as embarking in precisely that sort of thing,” Gartman wrote in his daily letter today. “The Fed shall have to buy Treasury securities from the dealers to make certain that very high-powered money is made available to them, and in the process, it shall reflate the economy.”

Gold for immediate delivery fell $12.39, or 1.5 percent, to $838.45 an ounce as of 11 a.m. in London. Futures for December delivery in New York dropped $54, or 6 percent, to $843.

“Selling is ill advised,” Gartman wrote. He sold the metal in mid-July, according to the letter.

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