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Gold In Manipulative Sell Off? Nice New Years Gift

GoldCore's picture




 

Gold fell $20.20 or 1.2% in New York yesterday and closed at $1,664.50/oz. Silver slipped to as low as $29.972 and finished with a loss of 2.55%.


Gold in US Dollars (1 Month) – (Bloomberg)

Gold fell a further 2% to a 4 and a 1/2 month low today after minutes from the U.S. FOMC meeting highlighted increasing concerns over its highly stimulative monetary policy, sending stock markets tumbling and boosting the dollar.

Today, U.S. non-farm payrolls data is due at 1330 GMT which will show whether the fragile US economy really is recovering.

Silver's slip yesterday made its value at its cheapest compared to gold since late August, with 55.76 ounces of silver now equal to one ounce of gold, against 50.4 in early December.

Gold's price falls may be due to profit taking by speculative players. Since December 20th gold had risen from $1,638/oz to $1,694/oz or by 3.5%.

It may also be the case that bullion banks with large concentrated short positions are using the pretext of the Federal Reserve minutes to manipulate the price lower - both to profit and to allow them to close out their significant short positions at more advantageous prices and possibly even go long.


Gold in US Dollars (1 Year) with 50, 100 and 200 Day Moving Averages – (Bloomberg)

Federal Reserve policy makers said that they probably will end their $85 billion monthly U.S. bond purchases sometime in 2013. The key word is probably and many doubt whether the Federal Reserve will stop their debt monetisation programmes any time in 2013.

Even if the Fed did end them, ultra loose monetary policies and negative real interest rates are set to continue as are competitive currency devaluations - two other fundamental pillars supporting the precious metal markets.


Gold in US Dollars (1 Year) With Monthly Average Price – (Bloomberg)

Yet again, the precious metals move down began in earnest during illiquid markets in Asia. On Thursday, gold fell almost 1.5% during the first three hours of Asian trading.

Gold has broken below the December low of $1,635/oz and below the 50, 100 and 200 day moving averages. However, technical analysis should be ignored in favour of fundamental analysis given that there are strong grounds for suspecting that the gold and silver markets are subject to manipulation by certain banks in the same way that interest rates were in the LIBOR manipulation.

The move down is overdone and the smart money will again see the over reactive sell off, manipulative or not, as a nice gift to start the New Year and will again accumulate on the dip.

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Fri, 01/04/2013 - 18:10 | 3124009 fourchan
fourchan's picture

My ounces are just fine and as shiny as ever,

it says it doesn’t care what the paper ponzie does in relation to it,

because it can’t be devaluated. It remains as blissful as it was

hanging out with the Incas Mayans Spaniards druids Samarians and all the rest.

It laughs at the day to day frauds of man.

 

Sat, 01/05/2013 - 03:50 | 3124801 MeelionDollerBogus
MeelionDollerBogus's picture

dunno, my ounces seem to get progressively shinier with lower prices.
Oh right, putting more OTHER ounces next to them has even more reflections.
Nevermind.

Fri, 01/04/2013 - 18:44 | 3124084 CH1
CH1's picture

I just hope the downtrend continues for another few months. I want to load up.

Fri, 01/04/2013 - 17:51 | 3123956 Rustysilver
Rustysilver's picture

DOW in 1929 is not the same as in 2013.  They force the losers in the DOW to get lost.  Hard to compare.

Fri, 01/04/2013 - 17:46 | 3123933 dlmaniac
dlmaniac's picture

It's disappointing they did not drive it to 1620 to meet my buy orders.

Sat, 01/05/2013 - 03:47 | 3124796 MeelionDollerBogus
MeelionDollerBogus's picture

It was very close. My math shows several possible entry points. Mine was 1650 so dipping to 1626 overnight & recovering triggered me.
Your order entry is still within range, as low as 1560 but obviously the lower you go the less likely you are to fill. You takes your chances... I takes mine.

goldpricemodel 2013 projection

goldpricemodel 2013 roc 52-week

gold 52 week ROC 1980 to 2011

I'm daring this one too ... now that's a whole other story : vxx vs spy 01 zoomed out, see http://flic.kr/p/daxu6H

vxx vs spy 02 zoomed in, see http://flic.kr/p/daxu6H

Fri, 01/04/2013 - 17:53 | 3123928 OneTinSoldier66
OneTinSoldier66's picture

A personal quote I came up with a while back that I still kind of like:

 

When they took us off the Gold Standard they took away our money... in order to make it theirs.

Fri, 01/04/2013 - 17:31 | 3123876 MFLTucson
MFLTucson's picture

The Federal; Reserve bank is in bed with these bullion banks and is the most corrupt enterprise on the planet. It is hated by all Asian and eastern European countries and soon the US will be isolated due to the fraud and deception from the liar Bernanke and his Jewish friends. The gig is up folks, own Gold or go broke and Bernanke knows it.

While so many in this country are out of work and losing their savings, the clown is off in Hawaii which will cost the taxpayers $20 Million.  The man who claims to feel the middle classes pain is off on a lavish vacation on their dime as they suffer.  Of course those of us who thought he was nothing but a phony since day 1 see through his rhetoric and lie’s and realize that he was only out to fool the people to get reelected.  For all you brothers and sisters with 11.5% unemployment, hope you like your choice!!  99.9% of you voted skin color not substance so now you can live with your choice.   Better keep praying for the paper dollar because it is your only hope for change, Obama is done; he got what he wanted from you.

 

 

Fri, 01/04/2013 - 17:14 | 3123806 zorba THE GREEK
zorba THE GREEK's picture

Gold is golden. Silver has a silver lining.

Fri, 01/04/2013 - 17:15 | 3123789 MeelionDollerBogus
MeelionDollerBogus's picture

http://flic.kr/p/dvDHf2

Is there any limit to how often one can write "told ya so" and post pictures of boating accidents and scuba gear? Is there?

Back up the truck, loading time is NOW.

http://scharts.co/TBGBTV - for the 277 rate of change, week by week, we're still only at the 1/3rd bottom portion of the trending channel. 1560 is a possibility but do you want to wait? In the next 4 weeks maximum this deal is GONE. Get the discount prices now.

Silver is acting like a cash 2.72x etf on gold too - picture 2500 gold in october with 90/oz silver along that trend in the scatterplot.

Gold, bitchez - and silver for those who are ready for barter & perhaps some unloading for hyperinflated paper in the near future

Basel III - gold is a Tier 1 asset - only a fool would turn their nose up at gold at these prices

Fri, 01/04/2013 - 17:09 | 3123786 Karlus
Karlus's picture

I doubt its a gift if you go long at 1675 and it gets morning raided for a week to get to 1550....

I dont buy the Paulson story for Dec....

Whoever did the Dec hit is still out there and I doubt they are long (paper)

Fri, 01/04/2013 - 22:22 | 3124465 WTFUD
WTFUD's picture

KarlKus
Would be super for the 99% of us devotees of Z/H ( we don't All have to Agree on All matters ; don't have to accept All the Advice from one another ; even disagree strongly on occasions ) if dummies like you were our worst enemy! I know you just want to weed out the last of the tailend muppets like GoldieGodswork to get that price down say another 20% and most of us won't hold that against you as we can pick up some slack also.
Get this though wether next month or next year OUR STACKS STAY PUT!!! We will enjoy watching the paper goldies trying to repatriate or politely request the physical.

10 years ago when i was daft ( only half daft now ) a company made it a condition that a gold concession should contain 10g per tonne before i bothered/ approached them to invest!
10 years on i have friends/acquaintances deep in jungle afriKa raising 10's o' millions of hard fiat £$€ backing juniors exploiting as low as 1.7g per tonne (even spread over vast areas of humps and mounds and not even sure that a Coup might happen before an ounce is produced ; ya dig??
Suggest looking for some other fools on other sites ( plenty of them )

Fri, 01/04/2013 - 17:36 | 3123900 Stock Tips Inve...
Stock Tips Investment's picture

I agree with the post. If you see the graph of gold prices in different timeframes, will appreciate a consolidation process and not a change in trend. The basis of this consolidation period occurs in May 2011 so it has lasted around 20 months. Most of the technical indicators also support the formation of this database consolidation. If this basis produced a break in the coming months, we would have an important support level, which would see a very significant price. I think this is a great period of accumulation of the smart money.

Fri, 01/04/2013 - 17:08 | 3123780 chubbar
chubbar's picture

Everyone who would like to tell Congress to lay off the gun ban routine, please follow this link to the "take action" center and there is an already filled out email if you fill in your area code and personal info. Please inundate these assholes trying to circumvent the constitution!

http://capwiz.com/gunowners/home/

Fri, 01/04/2013 - 17:05 | 3123766 cobra1650
cobra1650's picture

When gold is $5,000 and the Dow trades under 5,000 it will start to get interesting.

Fri, 01/04/2013 - 17:22 | 3123847 Magnix
Magnix's picture

Hope it drops below 1500 so I can buy more gold (maybe silver) coins!

Fri, 01/04/2013 - 17:00 | 3123744 mrktwtch2
mrktwtch2's picture

hmm lets see..gold was 35 in 1936..the dow was 70..infaltion adjusted gold would have to be almost 4000 today..in the long run it has never beaten stocks over a 20 yr period..ill laugh when its at 900 in 2 yrs..

Fri, 01/04/2013 - 17:57 | 3123971 Stuck on Zero
Stuck on Zero's picture

Okay mrktwtch2 tell me which DJIA stocks from 1936 are still around today.  Answer: GE.  All the others went broke.  The Dow is a fictitious collection of the best performers that is constantly manipulated to make the stock market look good.   Lets say, that instead of stocks that you purchased the same value in mint condition Double Eagle coins in 1936.  Where would you be.  Or better yet, assume you purchased the Dow shares in 1928 - what would they be worth today? 


Fri, 01/04/2013 - 17:28 | 3123859 akak
akak's picture

Wrong, you fucking dipshit paperbug idiot.

 

1929: Gold =$20.67, Dow = 381

1949: Gold = $35.00, Dow = 161

 

1960: Gold = $35.00, Dow = 600

1980: Gold = $850, Dow = 776

(And if you want to claim that my use of the peak price of gold at $850 in early 1980 is unrepresentative, then you paperbugs have to equally foreswear your constant and incessant reference back to that exact same price in the attempt to discredit gold as an inflation hedge.)

And furthermore, you disingenuous piece of shit, you know as well as everyone else here that "the Dow" has NOT been a concrete metric of all stocks, but only those cherry-picked as winners, with the losers continually being dropped from the index.  There is and has been no such thing as a "continuous Dow Index".

 

Sat, 01/05/2013 - 00:51 | 3124680 Element
Element's picture

must .. stop ... indian ... gold ... fad ... killing ... us

Fri, 01/04/2013 - 17:30 | 3123870 falak pema
falak pema's picture

don't make the Dow into the false aryan holy cow or the golden calf of torah song. Or you'll piss off the Oligarchs.  

Dow Jones and Dow Bhopal have a lot in common...

Fri, 01/04/2013 - 17:17 | 3123825 The Joker
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