Gold, Silver, Equities, Bonds Plunge On Fed Noise And China Debt Crisis Risk

GoldCore's picture

Today’s AM fix was USD 1,303.25, EUR 986.34 and GBP 842.38 per ounce. 
Yesterday’s AM fix was USD 1,366.00, EUR 1,019.86 and GBP 874.91 per ounce.

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Gold fell $16.10 or 1.18% yesterday and closed at $1,351.00/oz. Silver sank to $21.25 and ended down 1.25%.

Bonds, shares plus gold and silver fell sharply around the world this morning after the U.S. Federal Reserve again suggested an end to their easy money policies. Data also showed China's economy slowing down amid growing concerns that a credit crunch in China is worsening.

Cross Currency Table – (Bloomberg)

Gold fell to a more than two-year low, while silver was at its lowest since 2010. Gold fell 2.7% and silver slumped by 4.5%.

The sell-off began after Fed chairman Ben Bernanke again suggested that U.S. economic growth was strong enough to begin tapering back on its $85 billion in monthly asset purchases later this year.

Gold in USD, 2 Year – (GoldCore)

Ten-year U.S. Treasury note yields hit 15-month highs of about 2.38% after the comments sparking a slump in global equity and bond markets. 

The FTSE fell 1.8% in early trade, while the Dax was down 2.4% and the CAC 40 down 2.1%. 

The selling accelerated when a survey of China's factories showed activity slumping to a nine-month low just as a squeeze in the nation's money markets sent short term rates to record highs. 

Asian stocks outside Japan suffered their biggest daily loss since late 2011, German Government bond futures dropped to their lowest levels since February and oil slumped by around $1.50 a barrel.

Gold in USD, 3 Year – (GoldCore)

Perhaps most concerning is the very sharp selloff in the UK and other European government bond markets which have seen very sharp falls.

The market slump is also due to the fact that many bond and equity markets had become overvalued despite deteriorating fundamentals.

This deterioration in the fundamentals of the global economy may be more important that the Fed suggesting that they will ‘taper’ their extremely unorthodox and massive debt monetisation programme.

The Fed has been suggesting that this would happen for many months and as ever it is always best to watch what central bankers do rather than what they say. 

Some market participants may be realising that markets, and bond markets in particular, are hopelessly addicted to ultra-loose monetary policies, the printing of money to buy bonds and currency debasement.  

Conversely, these fundamentals are actually bullish for gold and silver in the medium and long term.

The smart, store of wealth, money will continue to gradually accumulate physical bullion on dips like this.

Commercial traders, the so-called "smart money" in the futures market have twice as many long positions as they do short, as per the latest Commitments of Traders (COT) report. Meanwhile, the speculators, the so-called "dumb money" have slightly more short positions.

Considering that the commercial traders tend to be biased to the short side, this indicates they are confident that prices will soon rise.

Ignore the noise of the Fed and continue to focus on the long term fundamentals driving the precious metals market.

Gold falls to 1-month low on Fed stimulus outlook - Reuters

India unlikely to ban gold imports or hike gold import duty - Reuters

Asian Stocks Drop Most in Two Years on Fed, China Credit - Bloomberg

Bonds, shares slump as Fed signals end to stimulus - Reuters

Video: "Get Out Of Paper Money" - Bloomberg

Video: Gold "Coming Back As Alternative Store Of Value" - Bloomberg

Man Who Oversees $150 Billion Warns Of Hyperinflation – King World News

The Dreaded “Tapering” - GoldSeek

Silver: Important Weapon Against ‘Superbugs’—Silver Institute - Mineweb

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CutOut's picture


What type of software do you use for your voluminous bot posts ?


Informed ZH readers remain curious as to why HEART repeatedly posts crap such as Boston Marathon bombing fake injuries/fake blood/crisis actors garbage which is 100% DISINFORMATION.

HEART intentionally conflates ridiculous,nonsensical Boston bombing speculation with credible information.
This a well known disinformation tactic designed to contaminate and discredit genuine factual content.
Thus HEART has confirmed he's a disinfo operative.
Boston Marathon bombing disinfo example #3616167

ZH is being targeted by FedGov spambots & human operatives saturating the comment sections with garbage and disinformation in addition to down voting certain posters.

They are not harmless trolls, they are professional operatives attempting to undermine and discredit ZH via multi nics & sock puppets.

Attacking this post by constant down voting speaks for itself: the shills exposed themselves.

Case closed.

JOYFUL's picture

Since it seems that some of us are still looking in on this theme.... and ZH is absorbed in it's mindless China-going-bust mantra as usual...

here's two more links to guys sniffin round the edges of what I'm trying to get at... which Philips expresses much the same sentiments... minus the political aspects which are, of course, verbotin to his kind... and... ... in which the core point to take in is this:

"This is all part of a desperate effort by the West to collapse the psychology of smaller participants around the world, and even to shake up institutional players, but the reality is there is only so much physical metal around.  Physical gold is in very short supply, and eventually this game that is being played is going to end.  This action is being forced mostly through the use of seemingly endless paper derivative-related futures selling and options."

Now that's a very revealing statement by someone not essentially outside of the mainstream, so to speak. ... a desperate effort by the West to collapse the psychology of smaller participants.... 

roll that one around for a minute.

Who is this "West"???  And what interest would this "West" have in so doing? Keith is pointing at something he can't really get a grip on. There is no "west" ... nor any western motivation for said attempt. There is only the hollowed out host... now reduced to a husk... and the parasite which controls it.

Then go back, and re-read, if you will, what I wrote about the endgame of the bullion banks and their central headquarters. It is your pyschology they are seeking to collapse... along with your wealth, and chances of maintaining the status of 'freeman'...

When even the brightest and most plugged in are unable and\or unwilling to connect all the dots... because... as someone said it here yesterday... it's too 'uncomfortable' to do so...

you know that the manipulators have succeeded at their game... and that it's only a matter of time fore the fat lady sings.


No. He is saying that paper is shit, and PM's have value. Get ready for the end of paper. Buy the fucking dips, BITCHEZ !

JOYFUL's picture

Sorry... lot's of strange stuff goin on with my logging in and so forth today...

I'm thinking outloud, and developing this train of thought after digesting the quoted sources... alongside today's breakdown... and yesterdays 'non'-event[s]/// your're welcome to join me in the thought exercise.

The ability of western banks[on behalf of their respective 'shadow governments'*]to control the POG has ended, as net outflows of real gold have cleared their cupboards for good. There is still a cross-over period(right now) of running on fumes... with the complicit media carrying the torch and pretending everything is still 'normal'... but today's breakdown ... by this way of thinking... is not a 'bizness as usual' manipulation...

today we are seeing the[beginning of the] end of the physical gold market in the west. No, that does not imply buying gold cheaper in the west and selling dearer in the east... not if there is no gold to be had in the west that is! Take what I'm saying here in reference to what I implied will be the reaction of the moneyprinters after the 'fumes' have run out. I'm sure you understood that implication to be that they will not allow the free trade of 'real' gold. Whether that involves confiscation and\or other means of eliminating the trade in precious metals in their jurisdictions... I do not pretend to know.

But I do know that they can and will use their 'paper' gold trade as a lever in the meanswhile to control the physical price in those same jurisdictions. They do not have that control lever  elsewhere... and it is elsewhere that gold will begin to find a real market price. If you read S Thomson's piece carefully[re India]I think that you will see what I am saying. Those governments outside of the western ponzi have a direct self-interest in gold finding that true price discovery.

Just to keep this short... I'll end it here. Feel free to respond here... or on another thread of similar theme... I'm interested in teasing out this idea and need all the help I can get to do so... there's a very interesting dynamic, or cross-current going on here inside the ZH castle... some seriously uber-China bears who apparently do not appreciate where I am going with this ... and the post is getting snuffed before it's time[twice! oh how dumb somebody must think we are -lol] ... wheels within wheels...

Wen_Dat's picture

If the TPTB are really pulling the strings, then they were the beneficiaries of Brown's Bottom (and would not be buying at current prices). The current beat down in prices may be a gift/deal to the eastern nations to allow the pozi to continue for a while longer (keep buying our debt and not sending it back). I cannot see what the benefit is in suppressing the western price if/when the east has their own "market/true" price (considering the lack of investment by the western populous). I am fairly new to this (PM investment/learning who really pulls the strings), so please excuse my ignorance. Isn't the whole point in PM price suppression, to keep the ponzi going? If there is a reset, what is the point in suppressing the price in a market that lacks participants.

Living in "merika" I would be more afraid of land confiscation. That seems to be the our real wealth.

JOYFUL's picture

I cannot see what the benefit is in suppressing the western price... Isn't the whole point in PM price suppression, to keep the ponzi going?

Again, apologies for the delay... which is due to being on a very different time cycle. Though the thread is stale, I'll take the opportunity to respond to your welcome points.

When we step back from the storyline imposed by the western media, it becomes possible to take a fresh look at who are the players... and what are their motives. Let's suppose a few things for arguments' sake.

a)the central banks(allegedly the financial arms of their respective governments)have no gold. Merikas' and the UK's gold long ago leased out... that supposedly heldby them on behalf the other western powers... ditto. Therefore, can these same central banks intervene to affect the POG? No. But there is gold remaining in the west. The majority of it is in the hands of the 'bullion banks'... who, through interlocking directorships... control the majority of the mining sector, the countries major exporters, and the rest of the financial sector. Nothing too outrageously contentious and conspiratorial so far right?

b)who are these 'bullion banks?' We know the names of the big six... we know who sets the London fix, we know about their manipulations of the paper markets and their connections to the CME and trading platforms... what we cannot see so clearly is their bottom line motivation - and loyalties... and this is where most readers will lose interest.

Because I will suggest that these big players in precious metals are all agents of the state of Israel, to which their personal and professional loyalties belong, as opposed to the countries in which they are located and doing business. Why does this matter?  Because the long term agenda of those who control that state is a millenialist event that will collapse the western world and create the conditions for a hegemonistic caste of rulers in complete control of the fates of hundreds of millions of formerly first world neo-serfs... who will be totally wiped out and impoverished, when they collapse the paper ponzi and initiate the switch back to gold-based finance. And gold will be in their exclusive possession. Even if you still own some gold... as an inmate in their vast prison plantation gulag... it will do you no more good than it did kulaks in Russia to have stored their valuables hidden from the Bosheviks. The big players in the precious metals... indeed the big players in the con called 'capitalism' are all in on this scheme. And ready to execute it as soon as all the gold that can be scooped up is in their hands. Not at all far off, in my opinion.

c)most everyone (in the west)will treat this scenario I lay out as a far-fetch sci-fi notion. They will therefore simply gaze on languidly as the process of their impoverishment and incarceration carries on right before their own 'lyin eyes'.  Outside of those parts of the world to which these hegemonists successfully lay claim... a return to sensible monetary systems will have taken place... and the new masters of the formerly free west will be ready to do business with these formerly unfree states... lilke China, Russia, and so on. Using your stolen wealth.

Wen_Dat's picture

I think he believes that may not be possible...leaving the country with or without gold

JOYFUL's picture

Since the previous thread where I posted my comment below disappeared pre-emptorily shortly thereafter... I shall repost it here...

and be done with it. Because today's breakdown fundamentally has nothing to do with "the FED"... which simply does not matter anymore. It's over beardboy.


As gold in USD breaks below $1300... and shows no sign so far of slowing down... is this the day of the long-prophecised de-coupling of the metal from western management?

Two recent articles point in that direction... with the first, when the dynamics of the market change so that government intervention no longer works to supress the price(1976)... are we on the cusp of a repeat of that event? If so, the ever-optimistic amongst us will assume it's meaning to be that the POG is set to soar... the more worldy of us can predict that when faux-market intervention fails... tptb will simply step in directly to eliminate the competition to their printing machinery. Feel free to use your imagination to understand how they will do this.

and in the second... Stewart Thomson boldly calls the gold bull market in the west 'dead'/// sound like trouble Mr\Ms PMbug? Hold on a minute, and put that thinking cap onto your exoskeleton! Stewart says:

The West owns very little gold now, so the ability of Western investors to drive the price a lot lower, is highly questionable. Also, the power of Asian media is something that the gold bears may be underestimating. My main sources of news are mostly Asian, and websites like “China Daily”, are beginning to get a following in the West....China Daily’s site is growing fast. It reputedly has 500 million users. There’s also a US edition. Asian media is generally pro-gold, while Western media seems to feature a lot of “gold-haters”.

It will happen in one day. There will be a shift in control of precious metals pricing... from London\NYC to Shanghai\HK... it will happen overnight... literally. The price of gold in the west may go below $1000... and stay there![see above]

But it will be trading multiples higher in the countries of the east and the BRICs... how is this possible? It is all in who controls price perception. When the complicit media of the fallen lands runs outta runway ... it's all over.

Now that gold has cracked $1300... we may just be witnessing this historic event. And it's all good... unless you made the mistake of refusing to get out of favor of somewheres more gold friendly whilst the getting was good.

Lore's picture

You seem to expect some distinct event, like passing a baton between runners: "It will happen in one day." The transition is gradual and has been underway for years. Grant Williams presents it well (click here). The market is destroyed, so participants seek more credible pastures. That is the end product of Western fiat central banking: the final outcome of Gresham's Law. Things become so corrupt that nobody wants to play anymore. Rgds

sandblaster's picture

Yes, please pontificate further................

honestann's picture

Say what?  Are you saying we will be able to buy physical gold in the west for below $1000 per ounce, then fly it on over to asia and sell it for $2000 per ounce... or something like that?  Or what?

MrSteve's picture

Say what? Say, maybe there's a good reason the first posting "disappeared" and the author wasn't sharp enough to understand it was a hint to not post such twaddle on ZH, but he obviously isn't sharp. period

MeelionDollerBogus's picture

don't be ridiculous - a flight path, like a government, is a myth.

Therefore there will be no planes and no country in Asia to fly to.