Gold Swoons After Central Banks Promise To Never Debase Currencies Again

Tyler Durden's picture

Very much as expected courtesy of 100% correlations, and following the earlier drubbing in the EURUSD, gold is now falling after the central banks of America, Europe, and Asia have all issued press releases they are henceforth ceasing all currency debasements and will never monetize debt ever again. Seriously, though, following the parabolic move higher earlier, as the widely predicted and expected correction is taking place (see Rosenberg's note from yesterday), which has brought gold to the level last seen two long days ago, all the new price does is provide a cheaper entry point to a self-created gold standard. Thank you LBMA.

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outamyeffinway's picture

Yes, thank you. These high prices were really discouraging me. There's much more to be bought!!!

unwashedmass's picture


i want to thank all involved in the gang rape. allowed me to buy in on a number of quality miners, and realign my futures contracts....


cat2's picture

Yes I am waiting for a big pullback to buy more.  I hope it keeps falling for a while.

etrader's picture

Its just the usual weighted take down before a -ve NFP

Helix6's picture

Re: Yes I am waiting for a big pullback to buy more.  I hope it keeps falling for a while.

Mmmmm...  this might be a time to think in terms of "dollar cost averaging"...

On the other hand, just about every other market is somewhere in the vicinity of an insane asylum.  Why not gold too?

dlmaniac's picture

hoho, to those who trade gold/silver that May 6th equity market flash crash is a non-event as it happens all the time @ CRIMEX.

Turd Ferguson's picture

From earlier today:


by Turd Ferguson 
on Thu, 10/07/2010 - 07:16


I would be wary of being long tomorrow morning at this time. The Evil Empire will seize any moment they can to cause a sharp pullback by scaring out the new weak-handed, momentum-based longs.

The BLS BS that will be released in 24 hours will somehow be construed as enough of a surprise to cause some type of short-term, short-squeezing dollar bounce. The EE will then try, once again, to paint the tape with an "outside reversal day"...maybe drive gold back down through 1350 toward 1330. The question is, will our buyer(s) of size step in and bring gold back to down only a few dollars? Recent history suggests that they will. They've got the EE on the mat. There's no sense in letting their collective feet off their throats.

update: 1:05 edt

OK, the EE did exactly what they were expected to do. A slight whiff of a dollar bounce and its off to the races in selling gold. As predicted, the buyer(s) of size have shown up and stopped the selloff at 1327. I've got about 1335 last. 

Unless gold can rally back up and close above yesterday's intraday low of 1343, the chart will have been painted with an outside reversal. This most likely means gold will be now be range bound for the next 7-10 days between 1310 and 1360. In times past, it might mean even more sustained downside but at this moment in history, fundamental supply and demand trumps TA. 

I'd still expect some fun and games after the BLS BS report at 8:30 tomorrow. Almost certainly the report will be construed as $ positive, causing an extension of the present short-squeeze rally. The EE will seize upon this and drive gold down to the 1315-1320 range. If this happens, you will have a moment in time for a great entry point in both gold and the miners.

If this all plays out as I expect it will. Gold will finish up the week right around here...1330 or so. Still a very solid week. Next week would be further range-bound consolidation in the aforementioned 1310-1360 area before the fun begins anew later in the month. $1500 by 12/10/10 is still in the cards.

Remember, the end of the great Keynesian Experiment is upon us. Prepare accordingly.



Turd Ferguson's picture

Thanks. One more thing...the EE did successfully paint a reversal day on the tape today. Watch very closely over the next few days. If they're able to paint another one next week before we can generate a close above 1365, they will have set the stage for a correction back down to the 1270 level. It will be nothing but a simple 5-6% correction in an overall bull market but it will be quite painful to watch, nonetheless.

Regardless of whether or not the correction develops, gold will still trade at $1500 by 12/10/10.

apberusdisvet's picture

Silver to $30 by January.  Just bought some more @ 22.57, although I think that it could go lower tomorrow; a psychology play for the weekend by TPTB.

apberusdisvet's picture

Silver to $30 by January.  Just bought some more @ 22.57, although I think that it could go lower tomorrow; a psychology play for the weekend by TPTB.

PlausibleDenial's picture

O/T, but certainly "dealing" with governmental criminal behaviour and manipulation. Obumers administration and Timmy's cronies should all be shot.

Subject: Chrysler--A Very Dirty Story

UNBELIEVEABLE!!  Chrysler--A Very Dirty Story
 Sooner or later it will all come to light!
This could be a scandal of epic proportions and one that makes Nixon's Watergate or Clinton 's Monica Lewinsky affair pale by comparison.
Why was there neither rhyme nor reason as to which dealerships of the Chrysler Corporation were to be closed?
Roll the clock back to the weeks just before Chrysler declared bankruptcy. Chrysler, like GM, was in dire financial straits and federal government "graciously" offered to "buy the company" and keep them out of bankruptcy and "save jobs."
Chrysler was, in the words of Obama and his administration, "Too big to fail," same story with GM.
The feds organized their "Automotive Task Force" to fix Chrysler and GM. Obama, in an act that is 100% unconstitutional, appointed a guy named Steve Rattner to be the White House's official Car Czar - literally, that's what his title is.

Rattner is the liaison between Obama, Chrysler, and GM.
Initially, the national media reported that Chrysler 'had made this list of dealerships'. Not true!
The Washington Examiner, Newsmax, Fox News and a host of other news agencies discovered that the list of dealerships was put together by the "Automotive Task Force" headed by no one other than Mr. Steve Rattner.
Now the plot thickens.
Remember earlier we said that there was neither rhyme nor reason why certain dealerships were closed?
Actually there's a very interesting pattern as to who was closed down.  Again, on May 27, 2009, The Washington Examiner and Newsmax exposed the connection.
 Amazingly, of the 789 dealerships closed by the federal government, 788 had donated money, exclusively to Republican political causes, while contributing nothing to Democratic political causes. The only  "Democratic" dealership on the list was found to have donated $7,700 to Hillary's campaign, and a bit over $2,000 to John Edwards. This same dealership, reportedly, also gave $200.00 to Obama's campaign.
Does that seem a little odd to you?
Steve Rattner is the guy who put the list together. Well, he happens to be married to a Maureen White.  Maureen happens to be the former national finance chairman of the Democratic National Committee. As such, she has access to campaign donation records from everyone in the nation- Republican or Democrat. But of course, this is just a wacky oincidence," we're certain.

Then comes another really wacky "coincidence."
On that list of dealerships being closed down, a weird thing happened in Arkansas , North Louisiana, and Southern Missouri .. It seems that Bill Clinton's former White House Chief of Staff, Mack McClarty, owns a chain of dealership in that region, partnered with a fellow by the name of Robert Johnson.    
Johnson happens to be founder of Black Entertainment Television and was a huge Obama supporter and financier.
These guys own a half dozen Chrysler stores under the company title of RLJ-McClarty-Landers. Interestingly, none of their dealerships were ordered closed - not one! While all of their competing Chrysler/Dodge and Jeep dealership were!
Eight dealerships located near the dealerships owned by McClarty and Johnson were ordered shut down. Thus by pure luck, these two major Obama supporters now have virtual monopoly on Chrysler sales in their zone. Isn't that amazing?
Go look in The Washington Examiner, the story's there, and it's in a dozen or so other web-based news organizations; this isn't being made up.
Now if you thought Chrysler was owned by Fiat, you are mistaken. Under the federal court ruling, 65% of Chrysler is now owned by the federal government and the United Auto Workers union! Fiat owns 20%. The other 15% is still privately owned and presumably will be traded on the stock market.
Obama smiles and says he doesn't want to run the auto industry.
As horrifying as this is to comprehend, and being as how this used to be the United States of America , it would appear that the president has the power to destroy private businesses and eliminate upwards of 100,000 jobs just because they don't agree with his political agenda.
This is Nazi Germany stuff, and it's happening right here, right now, in our back yard.
There are voices in Washington demanding an explanation, but the "Automotive Task Force" has released no information to the public or to any of the senators demanding answers for what has been done.
Keep your ear to the ground for more on this story. If you've ever wanted to make a difference about anything in your life, get on the phone to your national senator or representative in the House and
demand an investigation into this.
Benjamin Franklin had it right when he said, "All that's necessary for evil to triumph is for good men to do nothing."
Car Czar No More
An amazing thing happened as this story was going to press. Obama's Car Czar, Steve Rattner, resigned on July 13 and was promptly replaced by former steel workers union boss Ron Bloom.
According to CBS News, Rattner left "to return to private life and spend time with his family."
Treasury Secretary Tim Geithner said, "I hope that he takes another opportunity to bring his unique skills to government service in the future."
By the way, Rattner is under investigation for a multi-million dollar pay-to-play investment bank scandal in New York ....  
But, we're certain that had nothing to do with his resignation. And, according to several news sources out there, there are rumors he's being investigated for what could be pay-to-play scandal involving the
closing of Chrysler and GM dealerships. Really?
Again, that couldn't have anything to with his resignation-that's ridiculous!
Like CBS said, this guy just wants to "spend more quality time with his family."
Obama has 32 personally appointed "czars" who answer to no one but him, all of whom are acting without any Constitutional authority. But hey, we're sure they all have "unique skills,"... as Tim Geithner likes to say!
Check it out at the following websites.....
This goes from beyond corruption in high places - to gross criminal actions on the part of our government!
I hope you will spread this far and wide, and hopefully the taxpaying public will demand some of that transparency we were promised...... followed by criminal prosecution of the perpetrators!
tmosley's picture

Wow.  That is quite a story.  Too bad the website won't open.  Also too bad they go to one of the most partisan publications in existence.  I would like to see the primary source for this information to verify its veracity before I pass judgement.

PlausibleDenial's picture

I am not sure about the website not opening as it does for me from the ZH site.  In terms of partisan, I could care less as I don't read the major publications as they are all partisan in one way or another. Moreover, I see you post here on ZH which is partisan in its main meme. It was just an email to me that I added here.  Suprisingly, I got junked... Must have hit some nerves. 

Sabremesh's picture

What exactly is ZH "partisan" about? I would say ZH has a healthy distrust of of mainstream US politics, and the majority of subscribers also, many of whom are not even American.

PlausibleDenial's picture

Ummm, let's see GOLD... Oh, btw, I too like gold, but I am partisan as well.  I just don't try to not admit it.  :)

Henry Chinaski's picture

No doubt there will be a thorough investigation by other more mainstream, less partisan media outlets.  However, it won't be of the administration.  They will investigate the author of the article, the bloggers who are digging up dirt on this and all of the republican donor/dealers...

gmrpeabody's picture

Let me assure you, good Americans, that Eric Holder will not be lead into some partisan witch hunt just because someone doesn't like the way an unbiased and arbitrary list was assembled.

alpha60's picture

please push your agenda on some other, non-gold price thread.

hedgeless_horseman's picture

Amazingly, of the 789 dealerships closed by the federal government, 788 had donated money, exclusively to Republican political causes, while contributing nothing to Democratic political causes. The only  "Democratic" dealership on the list was found to have donated $7,700 to Hillary's campaign, and a bit over $2,000 to John Edwards. This same dealership, reportedly, also gave $200.00 to Obama's campaign.

Citation needed.

Hook Line and Sphincter's picture

Obama, Chrysler, GM.

You placed this in a Gold thread because, why?

Not a bad topic, but use some sense.

patience...'s picture

They should have all been shut down and forced into true bankruptcy.

Rusty Shorts's picture

Robert Johnson eh?

Damn, this dude gets around. Just built a $10,000,000 - 4 Star Hotel in Liberia, financed the rebuilding of Robertsfield International Airport in Liberia, has his fingers in the brand new Delta Airlines International flights to Liberia, has his fingers in Mt Nimba Iron Ore Mine, formerly Lamco Mine, Liberia, the highest grade ore deposit on the planet. Oh, Liberia is the last frontier of Gold and Diamond exploration, huge deposits just sitting there in the jungles, btw, those jungles are the last of the old growth tropical hardwoods to boot...did I mention the Oil and Gas deposits? 


Wait, what? The President of Liberia is Ellen Johnson - Sirleaf, huh.


The old Lamco Mine

Stuck on Zero's picture

Round up the usual suspects.  Hold a Senate investigation.  Absolve everyone.  Deny.  Deny.  Deny.  Order the press to switch coverage to Britney's acne spots and Paris Hiltons latest sex tapes.  Damage done.

Hondo's picture

Just goes to show you how many really stupid people are out there either running their own money or losing other peoples money

cossack55's picture

How about some heavy swoooning action on silver.  Need a bunch more ASEs and save some money for the 2010 proofs next month.

-Michelle-'s picture

Thank you, indeed.  I believe a trip to the coin shop is in order this afternoon.

1100-TACTICAL-12's picture

How long until it starts moving back up?

detersbb's picture

This is a self defeating premise by the COMEX and LBMA in that the losses that they sustain on the short positions that they are selling right now are going up.  Why sell lower priced naked shorts that will result in greater losses that higher priced naked shorts?  This is the action of an instuttion rife with insanity, or prehaps they are masochists and enjoy losing the behinds by that much more.


Either way, now the sharp dip will encourage that many more to use it as the entry point they have been seeking for the last couple of week to go long gold.

EscapeKey's picture

Because they sell tons of paper, and take physical delivery?

Snidley Whipsnae's picture

Bingo! Fed supplies JPM/bullion dealers with money hot off the

This is one of many, many reasons the Fed will never be audited.

I have already placed buy orders for physical and will buy more if it continues to fall.

InconvenientCounterParty's picture

seems there's a QE2 on/off trade here. A choice between a slight limp and full retard. Place your bets.

DocLogo's picture

for some reason I read that in Steve Buscemi's voice

tmosley's picture

I'm looking to expand my PM positions either today or tomorrow.  We'll see what the prices do in the next 48 hours.'s picture

me, due†

i just got coin yesterday and went and showed my new banker woman them. she just stared and stared and stared, she had never seen one before and couldn't believe how utterly beautiful they are. lady liberty takes another one in on looks alone. i showed to my MAX girl cuties, they be buying some coin too. ask if MAX would take coin for my new Prada boots, he might some day.

gmrpeabody's picture

Prada boots???????

I thought you were homeless, and living in the bushes near the banks of the Roaring Fork. ;-)

Temporalist's picture

Living in a van down by the river...with my Prada boots on.'s picture

homeless and naked in Prada boots is the NEW NEW thing in fashion.

check out this dude's new magazine. i applied.

impending doom's picture

You should ditch the vibrator and try using a roll of silver eagles instead...'s picture

got my horn exchanged today, so i am quite happy, but thanks for the suggestion. men helping out the  babe.

Misstrial's picture

kathy - you should see a buffalo - stunning.

~Misstrial's picture

i have seen a lot of R E A L  buffalos, and wouldn't call that animal stunnning. maybe in silver or gold better methinks.

Snidley Whipsnae's picture

The gains in gold have been mostly in overnite trading recently.

We will probably see heavy buying overnite when Asia and Mid East wade in.

Minion's picture

Good observation.  The public in Arab and Asian countries are getting involved.  The final phase of the bull market is usually when the public figures out what's going on and starts chasing price..... Gold Vending Machines, anyone?  :D

The flip side of this is the FOFOA factor....... "oil and gold never flow in the same direction"