Bank Of America: "Gold Squeeze Gets Explosive Above 1270"

Tyler Durden's picture


Just out from Bank of America's head technician MacNeill Curry:

Gold gets explosive above 1270. Watch out.


With the US $ coming under pressure, the potential further gold gains is high and rising. 1270 IS KEY. A break of the 1270 pivot should be the catalyst for short squeeze higher, exposing the confluence of resistance between 1362/1399

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Thu, 01/23/2014 - 12:27 | 4359108 VD
VD's picture

bring it!

Thu, 01/23/2014 - 12:31 | 4359124 Thomas
Thomas's picture

Agree, but those trend lines are silly--a massive extrapolation from the early part of the slope across a chasm. You could give third graders rulers, a little guidance, and get analyst trendlines that are publishable.

With that said, somewhere this really does get exciting.

Thu, 01/23/2014 - 12:40 | 4359158 RaceToTheBottom
RaceToTheBottom's picture


"You could give third graders rulers"

That is why the FED could be using that.

Thu, 01/23/2014 - 12:48 | 4359185 flacon
flacon's picture

Is it true that the only reason why the PAPER PRICE of gold would go UP is because people place TRUST in the FUTURES markets? What happens when the trust of the paper markets is destroyed? Gold "price" (paper gold) to zero probably - as it should. There is a fine line between ZERO and INFINITY. 

Thu, 01/23/2014 - 12:51 | 4359196 WarriorClass
WarriorClass's picture

With the death of the petrodollar, gold and silver will be king in America.

Thu, 01/23/2014 - 13:35 | 4359398 BaBaBouy
BaBaBouy's picture

GOLD Will Get "Explosive" Above $10,000... WATCH!

Thu, 01/23/2014 - 13:46 | 4359450 1000 splendid suns
1000 splendid suns's picture

Still performing techinical chart analysis for a completely manipulated market.

Waste. Of. Time.

Thu, 01/23/2014 - 14:13 | 4359569 Herd Redirectio...
Herd Redirection Committee's picture

CAD price of gold has increased by $100 in the last month... So Canadian readers of ZH say, "Thank you"

Thu, 01/23/2014 - 12:53 | 4359204 Thomas
Thomas's picture

Backwardation! (Calling Strunk & White: Could we get a ruling on whether that term was invented by linguistic retards?)

Thu, 01/23/2014 - 17:29 | 4360274 OceanX
OceanX's picture

As a matter of fact, my buddy has a PHd. in Linguistics, I will forward your query to him and let you know what he thinks, lol...

Thu, 01/23/2014 - 13:00 | 4359226 maskone909
maskone909's picture



i think if the paper prices were not settled in FRN's, it would go to zero.  but the paper junkies ultimately will settle for cash and be content.  imho

Thu, 01/23/2014 - 13:02 | 4359246 unrulian
unrulian's picture

So if 1% is a surge then and explosion must be what...3%?

Thu, 01/23/2014 - 13:19 | 4359313 flacon
flacon's picture

Yeah, and a market PLUNGE is defined as anything more than 0.30%. LOL! Gotta love laughing at those bulls. 

Thu, 01/23/2014 - 15:00 | 4359756 Mad Mohel
Mad Mohel's picture

It's all fun and reindeer games till people start jumping out of windows.

Thu, 01/23/2014 - 12:41 | 4359160 LawsofPhysics
LawsofPhysics's picture

Yes, I agree.  Perhaps the right question to ask is why would a primary dealer want us to start taking a long position in paper gold?  Why now, especially with the yield curve flattening?

Thu, 01/23/2014 - 13:24 | 4359340 Ghordius
Ghordius's picture

good question, and I agree with you both. BoA? the same BoA that predicted the end of the EUR several times? I'd hazard to say that they don't really understand foreign currencies, and for all practical purposes gold is a foreign currency - regardless of the comex

edit: TH (Tyler Himself) answers below the question why we should listen to BoA: "Because idiots who manage trillions do"

Thu, 01/23/2014 - 12:46 | 4359181 The.Harmless.Who
The.Harmless.Who's picture


$1,362 - $1,399?  


Hmm, thank you B of A but I'm aiming a LOT higher than that.  






Thu, 01/23/2014 - 13:02 | 4359247 BadDog
BadDog's picture

Me too. Bankers analysis of gold kind of like reading a cook book by Hannibal Lector.

Thu, 01/23/2014 - 12:48 | 4359187 LongBalls
LongBalls's picture

When the global regulators are acting as if they are coming down on the banksters fraudulent gold trade it's because the bankers want them too. Regulators put "confidence" into the system and bankers get "cover". Gold is going to start the assention. Take head. It will not be over night untill it is........

Thu, 01/23/2014 - 12:30 | 4359118 NOTW777
NOTW777's picture

$1267 good enough for me

Thu, 01/23/2014 - 16:05 | 4359994 European American
European American's picture

$2000 good enough for me, for starters.

Thu, 01/23/2014 - 12:35 | 4359119 MarsInScorpio
MarsInScorpio's picture

Pivot , pivot, pivot, pivot . . . will that trite word go away when our basketball wannabe president goes away?


The idiot author of this report doesn't even know what a pivot is - he uses it when he means the word level.


Financial nerd desperate to sound cool . . . makes a fool of himself instead.


Are you really going to listen to this jerk educated beyond his intelligence with your financial future?


Thu, 01/23/2014 - 12:29 | 4359120 Murf_DaSurf
Murf_DaSurf's picture




He meant a "Paper Gold" Squeez, folks

Thu, 01/23/2014 - 12:33 | 4359137 NoDebt
NoDebt's picture


Thu, 01/23/2014 - 12:35 | 4359145 tradebot
tradebot's picture

Been to two Rodeos and a goat ropin...I never seen me any of that Paper gold...

Thu, 01/23/2014 - 12:52 | 4359200 Quinvarius
Quinvarius's picture

The physical squeeze has been ongoing for over a year already.

Thu, 01/23/2014 - 12:30 | 4359122 fuu
fuu's picture

My order at $0 is never going to fill at this rate.

Thu, 01/23/2014 - 12:34 | 4359141 Murf_DaSurf
Murf_DaSurf's picture



Keep the faith brother!

Thu, 01/23/2014 - 12:30 | 4359123 youngman
youngman's picture

We are losing our early gains of today already....Time will tell..but this seems not to have the legs required

Thu, 01/23/2014 - 12:38 | 4359151 tradebot
tradebot's picture

Well you can bet there those that are shooting at this fledgeling wth every caliber they have.

Thu, 01/23/2014 - 14:01 | 4359523 superflex
superflex's picture

Have failth padawan.

There's only so much ammo they can throw at these spikes.

Thu, 01/23/2014 - 12:31 | 4359125 Bosch
Bosch's picture

Eff the paper market bullshit but we know it is undervalued compared to real physical demand so does one buy the rigged IAU knowing it is truly undervalued or pass because it is rigged as hell and who knows when or if reality will hit? 

Thu, 01/23/2014 - 12:30 | 4359128 firstdivision
firstdivision's picture

The other explosive is the amount of manufacturing in the US....and by explosive, I mean implosive

Thu, 01/23/2014 - 12:31 | 4359129 mclant004
mclant004's picture

Even though gold will break through this level and much higher, Why would we listen to anyone from BoA. 

Thu, 01/23/2014 - 12:33 | 4359135 Tyler Durden
Tyler Durden's picture

Because idiots who manage trillions do

Thu, 01/23/2014 - 12:50 | 4359193 NIHILIST CIPHER

TD    I'm good with that.

Thu, 01/23/2014 - 13:11 | 4359276 tallen
tallen's picture

I worked on the buy side last summer, just about everyone there was convinced gold was in a bubble. Signs like gold ATMs in Dubai.  (One of the biggest AMs in the world). Once they start coming round and realising it's not in a bubble and forced to jump on the momo, it'll pick up.

Thu, 01/23/2014 - 12:32 | 4359132 becky quick and...
becky quick and her beautiful mouth's picture

6 months away, just like always.

Thu, 01/23/2014 - 12:32 | 4359133 fonzannoon
fonzannoon's picture

YAY bank of America! You rule! (jumping up and down and clapping hands as my helmet falls off and I spill my bowl of rice pudding)

Thu, 01/23/2014 - 12:48 | 4359189 NoDebt
NoDebt's picture

Bread helmet?

Thu, 01/23/2014 - 12:34 | 4359138 Confundido
Confundido's picture

BIS overnight intervention in 3,2,1! 

Thu, 01/23/2014 - 12:34 | 4359139 GrinandBearit
GrinandBearit's picture

Blah, blah, blah.  USD is dying.  The economy is train wreck in progress headed for the tressel bridge that is no longer there.  

Gold and silver is not a short term trade or a get rich quick scheme like bitcoin or paper investements.  Never trade it for a Tesla or some Chinese plastic garbage product that Amazon or Overstock sells... never.

Buy and hold and hold and hold, etc...

Thu, 01/23/2014 - 16:23 | 4360053 vulcanraven
vulcanraven's picture

From my cold, dead hands, and all that.

Thu, 01/23/2014 - 12:35 | 4359140 Kaiser Sousa
Kaiser Sousa's picture

they seriously just cant stand to see Silver above 20...

heres the close in fucking obvious

and i still bought another 400 this morning....fuck off asshole Banker fucks...

Thu, 01/23/2014 - 12:43 | 4359164 GrinandBearit
GrinandBearit's picture

One day the London "fix" will be totally irrelevant.

That day is coming sooner than later.

Thu, 01/23/2014 - 12:43 | 4359152 RaceToTheBottom
RaceToTheBottom's picture

The more I hear banksters like BOFA saying things that were said here months ago, the more nervous I get.

But then I remind myself that this is not a Free Market.

Thu, 01/23/2014 - 12:45 | 4359177 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Much as I enjoy stories about paper shorting games being overrun by dwindling physical supplies, I try to keep an open mind about the short to medium term possibilities given the near complete opacity of physical markets.

JPM's illegal short corner in gold from 2013 has been replaced by an equally illegal long corner in 2014.  And suddenly the big banks are publicly disccussing the possiblity of "an explosive rise" in price.  Something like that would certainly help shake some of that eligible inventory into registered...

Thu, 01/23/2014 - 12:51 | 4359198 BanksterSlayer
BanksterSlayer's picture

And I would like to ask, Does it matter if the gold price is $1270 or $12700 if its market is still being manipulated? Has there ever been a time in the history of mankind when the precious metals were traded in a true free market?


Jesse's Cafe says: 


Quite to the point, I think much of what we are seeing now is the 'negotiation stage' of this process [the one-world basket of currencies re-set].  It is not so much a question of outcome, but rather, of price.  What is to be included and at what valuation to the various world currencies.  I would be stunned if there was a return to an actual gold standard.  I would prefer to see the price of gold float freely without an official government valuation or the thinly disguised monkey shines of the Comex.  But such antics seem to be de rigueur in most financial markets as we have recently learned.

Thu, 01/23/2014 - 13:20 | 4359332 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I think Jesse is one one of the best out there.  His ability to accurately convey his (very evolved) understanding of what is happening to the world of money without resort to hyperbole makes him unique.



Thu, 01/23/2014 - 13:29 | 4359382 Ghordius
Ghordius's picture

yes, but his understanding of the EUR needs some improvements. and since I'm talking about the EUR, FOFOA explained several times - before the EUR was a Gosh!-Theme that this:

"I would prefer to see the price of gold float freely without an official government valuation or the thinly disguised monkey shines of the Comex." is exactly one of the pillars of the EUR setup: a fiat currency CB that holds gold without chaining it or damning it, just as a valuable asset

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