Morning Gold Fix: July 8, 2010

Tyler Durden's picture

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CitizenPete's picture

Hello? Is there any body in there ...?      ... just nod if you can hear me.

 

Is anyone looking at the chart as compared to yesterday?  Even the Kitco Chart shows almost a perfect overlap on the drop today.   Almost a perfectly timed trace.   If I was a conspiracy theorist I would say that this is a message -- like "watch this beeach!"

 

Co-ink-a-dink?  I don't think so.  more like ... deliberate shorting while central banks are moving tons of the yellow stuff.  

http://www.commodityonline.com/news/Central-banks'-gold-with-BIS-29758-3-1.html

FranSix's picture

The only piece of paper out there that is fixed to the price of gold are gold leases.  And when the price is fixed to the lease, what happens?  They get sold.  So where does this occur? London.  Closes 11am - 11:30 am EDT.  And when do these sales have their greatest effect?  When the discount rate is rising.  Otherwise they would bounce off.

Now, if central banks were buying back their own gold leases much like a QE programme of buying your own treasuries, in order to keep lease rates negative, that would be manipulation.  Or, if the amount of gold being leased out is actually 100X smaller than the amount of leases, then that too is manipulation, but you would call that overleveraged.  So you can say that perhaps the bullion banks, which were affected exactly the same way as other banks and stopped borrowing, left it up to central banks to buy up the leases.  A QE regime to prop up the bullion banks would cause no small level of consternation amongst the investing crowd that taxpayer money is being used to buy gold leases.

I would say at this point that there is a much greater likelihood that interest rates will change on bullion leases than there would be on treasuries.

TheJudge2012's picture

Question: How does the COMEX get its gold? Could they be filling up? They've had a ton of calls in the money over the last several months.

Johnny Bravo's picture

Gold to 50 bajillion trillion, bitchez!

Wen da you ess becomes Zimbabwe, or Weimar Germany, canned hamz!

boeing747's picture

Buy commodities when dollar is still 'strong', somebodies must short them and buy them in volumes right now.

A question: why Barrick Gold (ABX)  lost huge money while Gold price hits all time high? Anyone has answer? Maybe ABX was shorting the very product it produced but physical market gone the other direction.

herry's picture

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