‘Gold is about break out to the upside strongly,’ Dennis Gartman says

He believes inflationary pressures, especially an increase in wages, and the fact that monetary authorities have been expanding supply reserves are going to have a bullish impact on gold.

Gartman has liked the commodity for years and believes right now investors should have about 10 to 15 percent of their portfolios allocated to gold.

“One never knows when geopolitical risks will arise. One never knows when something untoward will happen economically,” he said.

“The stock market looks a little vulnerable. The geopolitical circumstances are getting worse and worse.” Gartman added.

His comments came shortly after Bridgewater Associates founder Ray Dalio said he recommends investors allocate 5 to 10 percent of their portfolios to gold.

“We can also say that if the above things go badly, it would seem that gold (more than other safe haven assets like the dollar, yen, and treasuries) would benefit,” Dalio wrote in a LinkedIn blog post.

Dalio cited the rising geopolitical tensions between the U.S. and North Korea in recent days.

— CNBC’s Tae Kim and Fred Imbert contributed to this report.

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