Goldman On Gold - "This Is A Very Important Level To Watch"

Tyler Durden's picture

Yesterday's apparent Yellen un-taper-driven strength in gold broke some key technical levels and Goldman Sachs sees upside.

 

Via Goldman Sachs,

Gold has finally spiked higher above notable pivot resistance 1,268-1,279 where the market had stalled since late-January.

The area encompasses a number of previous highs/lows since Aug. ’13 as well as the 100-dma. This has opened up risks to the 200-dma at 1,306).

To put things into context, the market has not been above this particular moving average since Feb. 8th last year (just over a year ago).

 

In short, it will be a very important level to watch how price action develops around it.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mister Kitty's picture

When's the last time Goldman Sachs got anything right?  My advice...sell everything.  Bitches.

eclectic syncretist's picture

I'd start by selling this suckers rally if I wasn't even more interested in miners.  This is playing out a lot like the year 2000, when the Fed started tightening after a huge run up in equities.  They'll get people to buy bonds, but equities will suffer for it.

1000 splendid suns's picture

We can watch the 'important level', or we can stop looking at fundamentals in a manipulated market, and stop pussy footing around and find out who was involved in the 7 sigma event last April.

AllThatGlitters's picture

Everybody's forgotten about Silver.  :-(

So this morning, Silver tried to play catch up with Gold.

For a change, it actually moved much more aggressively:

Live Silver Chart: http://www.pmbull.com/silver-price/

fonestar's picture

fonestar woke up this morning and his bits were fine.  Just thought he should let people know as they seemed very scared for some reason.

Now back to your fake gold markets....

BandGap's picture

Right, that doesn't sound creepy at all.  People are generally disturbed by other's mention of their "bits".

 

 

Au_Ag_CuPbCu's picture

Paper market may be fake but the shit in my hands is real...what's that in your hand fonefart?  Oh it's your dick.

fonestar's picture

...we refer to it as a cloning cable in the virtual world.

BandGap's picture

I thought you called it a bacon bit.

Dude, you need to get a girlfriend. Show her your bacon bit.

rubiconsolutions's picture

Good Lord Man! You're like a broken record. Can you comment on anything other than Bitcoin? Really, every single person on Zero Hedge knows you LOVE Bitcoin. What some of us wonder however is if you have the intellectual capacity to comment on anything else. We get it, "Blue Horseshoe loves Anacott Steel."

fonestar's picture

Yeah, why get excited about the world's first and premier P2P cryptocurrency when ya know.... you could get excited about a metal bar instead?

rubiconsolutions's picture

What I get excited about is something that is real, tangible and has a demonstrated track record of providing protection for wealth. I didn't get excited about pet rocks, beanie babies, pokemon cards and other "investment opportunities" of the last few decades. I also don't trust anything that is in the shadows as deeply as Bitcoin. For all you know Satoshi is Keith Alexander. It's pure and unadulterated speculation. As I've said before, repeal legal tender laws and let folks use whatever they want as a medium of exchange. However, 99.9% of the people out there have no clue how to mine or use Bitcoin. And I still think that at some point there's going to be thousands of cryto currencies out there and Bitcoin will be nothing but a Bitplayer. Your single minded zeal and enthusiasm notwithstanding, you may want to broaden your horizons a little.

fonestar's picture

Most of you blockheads equate tangibility with "real" and "value".  In fact, the very opposite is true because it is apparent to any intelligent person that information itself is the most valuable commodity in business and finance.  But you're so heavily invested in gold that you can't see the forest for the trees and all of your (dis)info is coming from that sector and people who made their money in a very different era.

The Mist's picture

Gold is insurance.

Bitcoin is interesting, though fantaticism is annoying. When it comes to bitcoin I prefer to the greater idea of cryptocurrencies, I don't see the necessity of the first becoming the final, things can go wrong plenty of times and I reckon the time is not yet ripe for mainsteam bitcoin dealings. Nevertheless it has its use in the margins of the economy.

Boxed Merlot's picture

repeal legal tender laws and let folks use whatever they want as a medium of exchange...

 

 

Amen.   Unfortunately, the US frn is so tied into the irs at this point of our history, it will likely take something greater than "an act of Congress" to purge it from our system.  Know anyone / anything up to the task?

 

 

fonestar's picture

There will be no political or legal solutions to these problems.  They are deep-rooted and spread throughout the western world.  The system, the professionals and the leaders people are supposed to look up to are all corrupt to the core.  There are however technical solutions to make these people completely redundant. 

halfawake's picture

fonestar, question - while i am a proponent of BTC in general (as an idea not an investment opportunity), what worries me is that, since it is dictated by computing power, and the entites that have the MOST computing power in the world are US and Chinese sponsored orgs (either universities or defense departments), what is to say that they are not or will not manipulate it for their own purposes? Do we even know how much computing power those entities have, so that it is definitively safe for real use?

fonestar's picture

The global computing power of the Bitcoin network is so far beyond all of the supercomputers on Earth that I wouldn't even call it competition.

rubiconsolutions's picture

Prove it, point us dummies to a source that validates what you say. Bluffdale Utah alone probably has more computing power than all the PC's in the US combined.

halfawake's picture

That's a fine subjective statement, and I *tend* to agree, but wouldn't it be the perfect bait and switch for tptb? Show me stats. Network is running at ~24128.557 Thash/s today; show me the tptb do not have 50%+ of this, and I'll concur with you.

fonestar's picture

Prove a negative to fonestar and he will concur. 

halfawake's picture

Ok, so rough calcs..

 

Current hashrate of 25 petahash/s roughly equates to 317,000 petaflops/s, 50% of which would be ~160,000 petaflops/s. The top supercomputer in the world runs up to 33 petaflops; the top-ten don't seem to aggregate to 100 petaflops (http://www.siliconindia.com/news/enterpriseit/10-Fastest-Supercomputers-...).

 

Thus, it would seemingly take up to 200x the current set of top-ten supercomputers to compromise the BTC system (which continues to grow). So unless DoD has a super secret quantum computing machine(s), this seems pretty safe computationally from *published* rates of supercomputers - though that assumption isn't super far fetched, you must agree.

 

In closing, I must opine that tptb would be best served to undermine BTC using commonly observed practices such as controls and misinformation.

fonestar's picture

In closing, I must opine that tptb would be best served to undermine BTC using commonly observed practices such as controls and misinformation.

...or perhaps launching DDOS attacks against the major exchanges in conjuction with arrests of highly visible Bitcoiners?

And I don't think a sudden 200x increase in the amount or power of the world's supercomputers is a very feasible or realistic projection.  About as realistic as all of their owners deciding to suddenly get together and use them to disrupt or destroy the Bitcoin network.

halfawake's picture

Indeed. And the aforementioned calcs only speak to the supply-demand (mining) of BTC being tough to compromise. As long as fiat is the medium of exchange, ANY commodity with such supply-demand integrity is compromise-able for a time (see: gold). Also, they could mine a hell of a lot of BTC with a 33 petaflop/s computer. If I were a policy maker, I'd recommend our gov't to stop using this computing power to unencrypt nude selfies of foreign leaders and instead mine BTC.

Papasmurf's picture

One morning fonestar will wake up to find his bit and his gibblets gone.

fonestar's picture

And how do you suppose that would happen?

silverserfer's picture

the fear that you experience every morning when you wake up and rush to your computer to check on your bitcoin account status will only increase with time till fonestars

d-day and you get that dreaded error message. AND   ITS     GONE    BITCH!!!!!

IT..  will.. be..   epic!

fonestar's picture

Again, how is this going to happen moron?

Aussiekiwi's picture

AussieKiwi woke up this morning and his Gold was fine, breathed a sigh of relief its not zeros and ones on a computer somewhere in the cloud.

tradebot's picture

Even a blind squirrel finds a nut...we know your old lady's squirrel is blind and found a nut

Oracle of Kypseli's picture

Let's not forget what Tyler has been telling us. Whatever GS says do the opposite.

Does this still apply? Or it got old and GS has a different MO?

waterwitch's picture

I thought Stolper left GS...all is well, right?

Murf_DaSurf's picture

 

 

 

pssst...hey Goldman Guys...we all know its Paper Gold...its NOT real price discovery..we all know its a manipulated paper price..but we know what you are doing is just a Muppet show.....we won't tell your Muppets..we promise..

willpoi's picture

Goldman says buy... Does this mean sell or get muppeted?

zorba THE GREEK's picture

The most important level to watch in gold is not the $ value (for paper gold),

but the level of physical gold in Fort Knox and Bank of England. When that

level hits the floor, the price of gold is off to the moon.

Cognitive Dissonance's picture

Cue the paper Gold dump in 3.......2.......1......

Sudden Debt's picture

Jellen is still wearing the "I'M NEW" sticker so she's not allowed to press the dump button yet.

new game's picture

gold approaches key levels in light of mass liquidations of fraudulant paper denominated gold.

there fixed it...

zorba THE GREEK's picture

Lately, it seems every time they dump gold, there is a line of dump trucks

backing up to load and haul it away. They better go to plan B.

silverserfer's picture

Mr cog, its more of a QE of new paper gold creation no? Manifest moar, dilute the trade market?

chdwlch1's picture

Another Goldman article with no satirical slant...and a GOLD positive article at that!...hmmmm

Ignatius's picture

Following Goldman recs is like the old Vegas story:

I went to Vegas in a $10,000 car.  Came home in a $90,000 bus.

Sudden Debt's picture

CAN'T DIG FOR GOLD WHEN IT SNOWS NOW DOES IT?!

and we all know supply and demand rules in the gold market so gold will go up...

Pool Shark's picture

 

 

No, but you can pay somebody else $5 to dig it out for you...

 

Yellowhoard's picture

Watch for an explosive move in Palladium soon.