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Morning Gold Fix: September 22

Tyler Durden's picture




 

From FMX Connect

Summary

October
Gold settled at $1272.50 per 100 troy ounces on Tuesday, a net loss of
of $6.60 for the day. After-hours activity was a different story
entirely  with a sharp rally after the FOMC minutes triggering an
intense rally and prices as high as $1285.

October
gold was up $19.10 to $1291.80 per 100 troy ounces as of 7:50 AM EST,
this morning. The December U.S. dollar index was down .643 to 80.03.
October platinum was up $18.60 to $1634.70 per 50 troy ounces. December
silver was up 46.5 cents to $21.10.

Gold Options Report

For Market Prices Click Here

Bloomberg (Reported 9/22/2010)

“Gold
climbed to a record in London and New York after the Federal Reserve
said it was willing to ease monetary policy further to boost the U.S.
economy, triggering a slump in the dollar.

The
dollar declined as much as 1 percent against the euro today, after the
Federal Open Market Committee said yesterday in its statement that it’s
“prepared to provide additional accommodation if needed to support the
economic recovery.” Silver reached the highest price since March 2008
and platinum hit a four-month high.”
Gold Climbs to Record as Dollar Weakens Following Fed Statement


NS Futures (Reported 9/22/2010)

“The
gold market has apparently been cheered by developments over the last
24 hours, as gold has jumped to fresh new highs off a number of
different developments In addition to higher yields than were seen in a
prior Portugal government debt auction, the gold trade also seemed to be
cheered by a fresh new low in the Dollar, talk of additional
quantitative easing, and perhaps even uncertainty in the US
Administration.

While
equity markets in Asia were mixed overnight, stock markets in Europe are
generally weaker this morning. U.S. stock indices have traded
moderately lower during the early Wednesday trade.”
Daily Metals Commentary

Reuters (Reported 9/22/2010)

“Gold
rose for a third day on Wednesday to hit record highs above $1,290 an
ounce after the Federal Reserve's signal that it was prepared to pump
fresh cash into the economy hurt the dollar and whet investor appetite
for bullion.

Silver edged ever-closer to
its highest in thirty years, against a backdrop of investors seeking
cheaper safe-haven assets, which was reflected in the largest one-day
inflow of metal into the iShares Silver Trust in 10 months.”
Gold bursts to record high after Fed rates nod

 

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Wed, 09/22/2010 - 09:14 | 596885 LoneStarHog
LoneStarHog's picture

Both gold and silver are trading as CURRENCIES!

Wed, 09/22/2010 - 09:19 | 596898 bigdumbnugly
bigdumbnugly's picture

so they're currently currencies?

Wed, 09/22/2010 - 09:30 | 596928 Spitzer
Spitzer's picture

They alsways have been currencies, for a hell of allot longer then any other currency.

Wed, 09/22/2010 - 09:32 | 596929 LoneStarHog
LoneStarHog's picture

No!  People are trading them AS currencies.  It does not matter what the fiat-loving and corrupt governments want, it is what people WILL do.  The movement has begun and it starts with treating gold/silver AS currencies in one's financial plans.  This is only going to grow as the fiat world dies.

Wed, 09/22/2010 - 09:44 | 596968 Spitzer
Spitzer's picture

No, Gold and silver are currency.

If I want to leave Canada with $10,000 or more, I must declare it. The legal tender value of a Maple Leaf coin is $50 dollars. So if the metallic value of gold was not a currency then I should be able to take out 200 coins right ? $10,000 divided by $50 equals 200.

Well guess what ? The government goes by the mettalic value of the coin, not the legal tender value.(because gold is a currency) The mettalic value of a coin is about $1310 so $10,000 divided by $1310 is 7.

If gold was not a currency I could take 200 coins out of the country without declaring it but since gold IS a currency I can only take out 7 coins.

Wed, 09/22/2010 - 09:46 | 596976 mrgneiss
mrgneiss's picture

We'll make an exception for you.

You can leave at any time now.

Wed, 09/22/2010 - 09:57 | 597018 Hephasteus
Hephasteus's picture

I knew a couple of ladies that decided to drive up to go drinking with one of the canadian ladies. They bought some kind of potting soil there and got busted with it at the border.

But no worries. We're still going to steal your maple tree growing soil one way or another.

Wed, 09/22/2010 - 10:35 | 597132 mrgneiss
mrgneiss's picture

No you won't, you'll get knocked out cold by our stronger beer!

What is it with you yanks and pot?  It seems like someone caught with a bit of pot in the US gets treated worse than a pedophile.  Just chill.

Wed, 09/22/2010 - 09:41 | 596958 MarketTruth
MarketTruth's picture

bigdumbnugly, are you an American? No disrespect meant by asking, just that in MANY parts of the world they KNOW gold is money. It is used in trade, transactions, etc in various marketplaces. From Vietnam to Switzerland... and China.. plus India of course.

Wed, 09/22/2010 - 09:45 | 596970 bigdumbnugly
bigdumbnugly's picture

just a play on words, MT

Wed, 09/22/2010 - 10:03 | 597041 MarketTruth
MarketTruth's picture

Ahh ok. Makes sense (of course). Thanks for the clarification.

Wed, 09/22/2010 - 09:18 | 596895 Dixie Normous
Dixie Normous's picture

The Dollar looks good.

Wed, 09/22/2010 - 09:32 | 596930 Spitzer
Spitzer's picture

The dollar looks like hell.

And no, the dollar is not stong because it is the best of the worst currencies, it has only been strong because it WAS backed by gold.

Wed, 09/22/2010 - 09:54 | 597006 schoolsout
schoolsout's picture

OT, but pertaining to your name...

a buddy has a boat by the name of "My Dixie Wrecked"

 

Wed, 09/22/2010 - 10:10 | 597062 Dixie Normous
Dixie Normous's picture

Perfect

Wed, 09/22/2010 - 12:05 | 597458 doolittlegeorge
doolittlegeorge's picture

i thought you were the "schoolslut."  sorry about that.  "been dazed and confused for long it's so true."

Wed, 09/22/2010 - 09:19 | 596896 unwashedmass
unwashedmass's picture

we should also start a countdown on when Bloomberg is going to start covering what is actually happening at the Comex....

I would bet you that they will give the masses no clue whatsoever until the Comex lies in a steaming pile of rubble....

and Ben shells out another 50B or so to JPM to make up for its "losses"......

Wed, 09/22/2010 - 09:21 | 596904 john_connor
john_connor's picture

DXY 79.85 and dropping like rock.  Is this the day the dollar died?

Don't be the last to hold treasuries.

 

Wed, 09/22/2010 - 09:23 | 596906 SWRichmond
SWRichmond's picture

"Gold climbed to a record in London and New York after the Federal Reserve said it was willing to ease monetary policy further to boost the U.S. economy, triggering a slump in the dollar"

And this willingness was a surprise to exactly whom?  What the fuck is wrong with people?

Wed, 09/22/2010 - 09:33 | 596936 Virginian
Virginian's picture

They are SLOWLY waking up. Probably too late, though....

Wed, 09/22/2010 - 09:24 | 596910 Upswaller
Upswaller's picture

Those I've tried to educate are starting to think there's a valid point.  "Gee, maybe he's not so crazy."

Wed, 09/22/2010 - 09:29 | 596922 fuu
fuu's picture

That always feels good.

Wed, 09/22/2010 - 10:55 | 597206 Temporalist
Temporalist's picture

It feels good to be crazy when everyone else is stupid.

Wed, 09/22/2010 - 12:07 | 597461 doolittlegeorge
doolittlegeorge's picture

sometimes.  but as pinoche said she "likes zombies."

Wed, 09/22/2010 - 09:24 | 596911 Dagny Taggart
Dagny Taggart's picture

I'd like to thank the members of the Academy...

Wed, 09/22/2010 - 09:24 | 596912 NOTW777
NOTW777's picture

what?  no sarcastic gold bug comments yet

Wed, 09/22/2010 - 09:40 | 596933 Pining for the ...
Pining for the Fjords's picture

Personally, I don't want to jinx anything for PM's...

You see, I remember way back in the olden times when you could get Silver for 17.80 rather than 21.10.  Oh wait, that was just 3 weeks ago.  My bad.

Wed, 09/22/2010 - 12:08 | 597467 doolittlegeorge
doolittlegeorge's picture

why have just one?

Wed, 09/22/2010 - 09:24 | 596914 Sophist Economicus
Sophist Economicus's picture

95% bears and counting on /DX.   Looking to get long at 79.50.   The thing is a piece of dung, but hey, profit is profit (i hope)

Wed, 09/22/2010 - 09:42 | 596960 Freebird
Freebird's picture

79.61 ...your in the zone

Wed, 09/22/2010 - 09:26 | 596917 overmedicatedun...
overmedicatedundersexed's picture

benny how you going to hold gold ,down??how ??  this breakout is getting very scary, and is building momo.

fiat dreams burning , benny what's you got??

burn the house down?? raise rates stat?

benny is indisposed this AM. Timmy ?anyone seen Timmy??

Wed, 09/22/2010 - 09:36 | 596943 Snidley Whipsnae
Snidley Whipsnae's picture

Benny could sell some of the US gold (not audited in over 50 years but claimed to be over 8,100 tons) into the market to supress gold price.

Many times the actions are not taken give more insight into what is really going on.

Wed, 09/22/2010 - 10:01 | 597029 GeorgeHayduke
GeorgeHayduke's picture

Double-tapped...see below.

Wed, 09/22/2010 - 10:09 | 597059 bronzie
bronzie's picture

"Double-tapped"

that's not a freudian slip inre what Benny deserves is it?

Wed, 09/22/2010 - 09:59 | 597030 GeorgeHayduke
GeorgeHayduke's picture

yeah, but the world may not want to buy gold-plated tungsten bars from Bennie. The US financial sector's reputation has become famous for scams anymore. Or is that infamous?

Wed, 09/22/2010 - 12:09 | 597479 doolittlegeorge
doolittlegeorge's picture

sell high, buy low.  hmmm.  that would require a talent for trading.  last i checked Cramer wasn't head of Fed.  Nice thought, though.

Wed, 09/22/2010 - 09:27 | 596918 Silversinner
Silversinner's picture

Gold at big discount in euro,

start buying now you eurogold bitchez.

Think this will be last time to buy around 1000euro one ounce.

Wed, 09/22/2010 - 09:31 | 596925 Upswaller
Upswaller's picture

“The gold market has apparently been cheered by developments over the last 24 hours..."

It's not a cheerful moment, it's sad.  Investing in Gold is like buying fire insurance and then your house burns down.  I'd rather have my old house back.  I'd rather live in a sane world.

Wed, 09/22/2010 - 09:33 | 596932 Caviar Emptor
Caviar Emptor's picture

I understand the sentiment, but you have to realize it's just that. Money and economics aren't so sentimental. They just exist in the context of the world. Given that the world won't stop and time always marches on gold is actually part of the sane world. Happy trails.

Wed, 09/22/2010 - 09:33 | 596934 Turd Ferguson
Turd Ferguson's picture

I'll second that.

I doubt anyone here, except the anarchists, is truly happy that our world is burning down around us. Fiat money and Keynesianism have failed. The coming years are not going to be fun. 

Wed, 09/22/2010 - 09:39 | 596949 flacon
flacon's picture

I'm not happy that people have to suffer, but like a drug addict coming off drugs, PAIN is part of the healing process. 

 

Just think... after this is all over, they will rewrite the history of this episode and blame gold and silver and then they will commence rebuilding a New Global Fiat currency to protect the world citizens. They will do it all over again, and again, and again until we (the raped masses) revolt and execute judgement upon the Banks and drug addicted politicians. 

 

How many Central Banks has the USA had in it's SHORT history? THREE. As soon as is possible there will be the New Federal Reserve System II - the Fourth Central Bank of USA.

 

Wed, 09/22/2010 - 09:47 | 596982 fuu
fuu's picture

Exactly. Everything old is new again.

Wed, 09/22/2010 - 11:39 | 597357 tmosley
tmosley's picture

I consider myself to be an anarcho-capitalist.  I am far from happy that the world is collapsing around our ears.  I'm just sad that it had to come to this.  It's sort of like watching a loved one die slowly from congestive heart failure.  When the end comes, you are glad of it, because continuing was pure torture.

Though I long for a stateless society, one which has a government that consumes around 2% of GDP is certainly good enough.  We had that in this country for about 150 years, absent wartime.

Wed, 09/22/2010 - 12:10 | 597482 doolittlegeorge
doolittlegeorge's picture

we are at war.

Wed, 09/22/2010 - 09:35 | 596939 flacon
flacon's picture

You would? I'd rather see the destruction of debt; which is paper fiat "money". 

 

 

Wed, 09/22/2010 - 09:36 | 596941 Spitzer
Spitzer's picture

wrong

There is nothing "sad" about transitioning back to sound money.

It is also not just insurance, it is a store of value.

Wed, 09/22/2010 - 09:45 | 596971 Pining for the ...
Pining for the Fjords's picture

Agreed, and if you are an optimist (as I am) and see the possible outcome of all this eventually resulting in sound money, well then that is a day when I will no longer have to put up with central bankers cornholing me on a daily basis, stealing what is mine through printing and devaluation. 

Fire is scary, but perhaps this fire will clear some dead wood and result in a healthier forest.

Wed, 09/22/2010 - 12:12 | 597486 doolittlegeorge
doolittlegeorge's picture

lookin' like a "Wildfire" more and more everyday I must say.  And if this is a natural occurence as I certainly think the business cycle is trying to "prevent the fire" as governments preternaturally do only makes the reality of "the One" that much worse.

Wed, 09/22/2010 - 09:53 | 597004 grunion
grunion's picture

The sadness is in the human suffering that results from the transition.

Perhaps you are in a position that will be minimally affected while I, along with a number of others will face numerous unknown and unpleasant realities

Wed, 09/22/2010 - 10:07 | 597054 Pining for the ...
Pining for the Fjords's picture

I wish you nothing but the best grunion, and I sincerely hope that the "unpleasant realities" we all will face (and I am right there with you) will be less harsh than the worst scenarios we might envision.  I guess my take is, whatever will happen is way beyond anything I might do about it- we are basically passengers on this ride - so I might as well prepare for the worst and hope for the best.  Optimistically, I hope the assholes who brought this about will be utterly discredited along with their philosophy, such that sound money is established so they can't do it again. 

Wed, 09/22/2010 - 11:31 | 597329 ShaneAshton
ShaneAshton's picture

Definately speaking for yourself...i've already jumped off the speeding train, broke my ankle, and am watching dumbfounded while everyone flies off the cliff at lightning speed.

Jump off the train while you still can...its better than ending up in a heap of rubble at the bottom.

Wed, 09/22/2010 - 11:31 | 597331 ShaneAshton
ShaneAshton's picture

Definately speaking for yourself...i've already jumped off the speeding train, broke my ankle, and am watching dumbfounded while everyone flies off the cliff at lightning speed.

Jump off the train while you still can...its better than ending up in a heap of rubble at the bottom.

Wed, 09/22/2010 - 11:31 | 597332 ShaneAshton
ShaneAshton's picture

Definately speaking for yourself...i've already jumped off the speeding train, broke my ankle, and am watching dumbfounded while everyone flies off the cliff at lightning speed.

Jump off the train while you still can...its better than ending up in a heap of rubble at the bottom.

Wed, 09/22/2010 - 09:29 | 596926 Caviar Emptor
Caviar Emptor's picture

Today represents a further big step in the evolution of biflation. We're going to see huge cost-push inflation in things people need (and cost inputs for business). But things making up people's net worth will continue to drop (real estate, real incomes, employment opportunities, retirement assets). 

Wed, 09/22/2010 - 09:32 | 596931 fearsomepirate
fearsomepirate's picture

FWIW, I think we're due for a big correction.  Every time gold's broken much above its uptrend, it's been followed by a correction.  But I don't trade; I'm just holding onto gold mining stocks (read:  I don't think the dollar is heading to zero...but we're going to get a few zeroes knocked off of it).

Wed, 09/22/2010 - 09:38 | 596948 Spitzer
Spitzer's picture

Correction ?

Not typical for this time of year. Remember when India bought 200 tons at $1045 ?

Wed, 09/22/2010 - 09:39 | 596951 Caviar Emptor
Caviar Emptor's picture

Gold is merely reflecting that there's not many places for the newly minted Fiatscos to go.  Fed and global central banks try to push but only creates inflation, not growth. Given where the economy is right now they are risking to wipe out your wealth with money printing experiments. Gold isn't a speculation play, it's a survival play.

Wed, 09/22/2010 - 09:45 | 596972 Snidley Whipsnae
Snidley Whipsnae's picture

Why would there be a big correction when all central banks, other soverigns, and very wealthy individuals are all buyers?

When the IMF offers gold they certainly have not had difficulty finding buyers.

The dollar is currently sinking...why would people trade a sinking fiat for gold?

Jim Willie recently stated in an interview that the LBMA is now forced to buy gold in the open markets to cover gold missing from their allocated accounts. Of course, I have no way of knowing if this is true but the action in gold certainly looks extremely bullish...like buyers everywhere. 

Just curious why you would predict a correction now. BTW, I am not a believer in technical analysis in markets that are totally manipulated by central banks.

Wed, 09/22/2010 - 10:57 | 597205 JLee2027
JLee2027's picture

Demand will only increase, not decrease.

I read this yesterday and it rings true - Rising Gold and Silver prices don't mean profit taking, it means the hoarders buy MORE. It's a vicious upwards cycle, with limited available supply. The banksters are absolutely doomed.

Wed, 09/22/2010 - 12:53 | 597621 RockyRacoon
RockyRacoon's picture

Gold and silver will correct if at all possible.  Bank on it -- as they say.

More Forensic Evidence Of Gold & Silver Price Manipulation
Wed, 09/22/2010 - 09:36 | 596942 Sudden Debt
Sudden Debt's picture

LET'S KICK THOSE GOLD TEETH FROM GRANDPA'S MOUTH AND SELL THEM TO FUND HIS PENSION!!!!

 

Wed, 09/22/2010 - 09:37 | 596946 sweetwater88
sweetwater88's picture

Eric Sprott -Happy - shareholders totally confused. Time for PHYS to do another issue so Eric can have more cheap gold

Wed, 09/22/2010 - 09:51 | 596986 Waterfallsparkles
Waterfallsparkles's picture

It appears that Bernankie is trying to create Inflation thru Gold, Precious Metals, Oil and Food.

So, in effect the Elderly will not be able to heat their home, and the People of the World will starve.  But, it will create the targeted goal of staving off deflation.  Except of course in Houses which will continue to go down.

Wed, 09/22/2010 - 09:56 | 597013 Dixie Normous
Dixie Normous's picture

Well said.  But don't forget that they won't be wearing clothes, as the price of cotton shoots to the moon.

Wed, 09/22/2010 - 12:00 | 597437 JackTheOffer
JackTheOffer's picture

Well said.  But don't forget that they won't be wearing clothes, as the price of cotton shoots to the moon.

No clothes?  I knew there had to be a bright side.

http://www.tadias.com/wp-content/uploads/2008/06/nude_photo_news.jpg

Wed, 09/22/2010 - 12:14 | 597495 doolittlegeorge
doolittlegeorge's picture

toga! toga! toga! toga!

Wed, 09/22/2010 - 12:38 | 597575 apberusdisvet
apberusdisvet's picture

The only way the Health Care Bill will work is elderly genocide; under the plan, all those over 67 will be starved to death as the SS checks will only cover 1 loaf of bread and 1 can of tuna.

Wed, 09/22/2010 - 10:05 | 597048 gwar5
gwar5's picture

The transfer of wealth from one generation to the next, and from the West to the East, is under way.  Fasten safety belts for turbulence.

Wed, 09/22/2010 - 10:11 | 597069 Spitzer
Spitzer's picture

It is hard to find anyone that is bullish on gold at 1285-1290. The techies are bearish, dollar bulls are bearish, gold bugs are even bearish.

Maybe its a good time to buy.

Wed, 09/22/2010 - 10:12 | 597072 Waterfallsparkles
Waterfallsparkles's picture

I think Helicopter Ben is now using a B-1 Bomber to drop Money Bombs on the US.  Obviously cannot carry enought Money in the Helicopter.  I think a B-1 Bomber because all of the Money being dropped is going to Explode the United States eventually.  Soon, nothing will grow because it will be covered with Money and will not be able to get air or water.

Wed, 09/22/2010 - 11:41 | 597363 Hephasteus
Hephasteus's picture

October gold was up $19.10 to $1291.80 per 100 troy ounces as of 7:50 AM EST, this morning. The December U.S. dollar index was down .643 to 80.03. October platinum was up $18.60 to $1634.70 per 50 troy ounces. December silver was up 46.5 cents to $21.10.

So they 100:1 leverage gold and 50:1 leverage platinum.

Wed, 09/22/2010 - 11:57 | 597421 glenlloyd
glenlloyd's picture

"Federal Reserve's signal that it was prepared to pump fresh cash into the economy."

Looks like we're done with pretty words like QE, at least from Reuters.

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CL1's picture

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