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Gold Slammed To Fresh 10-Week Lows Below Key Technical Level

Tyler Durden's picture




 

What else should you do as Russian and Ukraine forces begin a serious un-de-escalation... sell precious metals with both hands and feet of course. The strength in stocks (whether channel-stuffed or not) is enough to make investors believe that we don't need no stinking Fed and that economy must be doing great all on its own. Gold is back below $1275, which SocGen warns could lead to $1233.

 

 

A close below 1275 will mean the extension of the correction to 1263/60 and possibly even 1233.

Gold has been evolving within a massive flat range since last June between 1400/33 and 1187/80.

Gold is breaking below the graphic support level of 1275, which has been acting as a median support in the main range. With daily RSI also breaking below a one-year support line a definite break below 1275 will extend the correction towards 1263/60, the 61.8% retracement of the last up move and 1233 (76.4% retracement).

 

Source: SocGen

 

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Thu, 04/24/2014 - 08:15 | 4689896 JustObserving
JustObserving's picture

The HFT computers of the FED are in overdrive in a preemptive strike on gold and silver as war fever heats up in Ukraine.

Thu, 04/24/2014 - 08:16 | 4689901 hungarianboy
Thu, 04/24/2014 - 08:21 | 4689914 Haus-Targaryen
Haus-Targaryen's picture

Stock up boys, buy real-estate in Switzerland, Silver -- real estate in Switzerland is probably a great way to hedge your bets, actually. 

Thu, 04/24/2014 - 08:29 | 4689942 Gringo Viejo
Gringo Viejo's picture

No worries. I'm buyin' all the way down...as much as I can....whenever I can. Far as I'm concerned, there's nowhere else to go.

Thu, 04/24/2014 - 08:39 | 4689975 Thomas
Thomas's picture

Those hogfuckers. I mean complete fucking hogfuckers. Damn. They are incorrigible. (Nice use of hogfuckers and incorrigible in the same rant, eh?)

Thu, 04/24/2014 - 08:41 | 4689982 Thomas
Thomas's picture

And BTW: "Gold is back below $1275, which SocGen warns could lead to $1233." They actually pay guys a lot of money to say stupid shit like that.

Thu, 04/24/2014 - 09:25 | 4690202 Arius
Arius's picture

uhmmmm ... so scared ... hit me Doctor Evil ... hit me ... please?

Thu, 04/24/2014 - 10:23 | 4690482 AllThatGlitters
AllThatGlitters's picture

Look how aggressively the "slam" was bought:

Live Chart: http://www.pmbull.com/gold-price/

Now that they got the headlines, and all the technicians wetting their pants with concerns about "key technical levels broken," they can sneakily begin covering shorts, while the silly wannabe traders and amateur shorts sell to them.

Thu, 04/24/2014 - 09:34 | 4690247 BigJim
BigJim's picture

C'mon Putin! Say something about Russia thinking about dropping the dollar and requesting gold as payment! Go on! Just a hint would do it!

Thu, 04/24/2014 - 09:34 | 4690249 RaceToTheBottom
RaceToTheBottom's picture

Actually, they got the memo where the FEDites will push Gold.

We don't get those memos.

But this is a long term war against gold, so the FED will not give up that easily.

Thu, 04/24/2014 - 08:43 | 4689993 agent default
agent default's picture

Forget Switzerland.  After all the concessions Switzerland has made to the EU and the US, they are finished.

Thu, 04/24/2014 - 09:27 | 4690207 AvoidingTaxation
AvoidingTaxation's picture

Always better than a FEMA camp.

Thu, 04/24/2014 - 08:39 | 4689967 Againstthelie
Againstthelie's picture

The same happened when the Swiss France was devalued and bound to the weak Euro.

Or when Draghi promised to print unlimited amounts of Euros.

And on almost any other very bullish occurrence for Gold in the last years. It would be hilarious if it wouldn't be the regime we are living in.

They obviously learned from Paul Volker's admission, that his biggest mistake was to let the price of Gold rise that much.

Whatever had been bullish for Gold for threethousand years, in the Brave New World no longer seems valid.

 

Thu, 04/24/2014 - 08:41 | 4689980 negative rates
negative rates's picture

Yes, war costs money, and gold can bring money in a very liquid way. Try getting funding from your financial advisor or bonds on the short, and it can take forever.

Thu, 04/24/2014 - 09:04 | 4690077 drendebe10
drendebe10's picture

Gold prices aren't manipulated. Nah, no way. And the fudge packer in chief is honest amd competent looking out for the best interests of the peasants and serfs. 

Thu, 04/24/2014 - 08:50 | 4690024 rayban
rayban's picture

Option expiry today: it looks like a continuation of last week bear raid. Weekly closing tomorrow more important, with a reversal possible after a similar failed attack on the miners on Monday.

Thu, 04/24/2014 - 09:23 | 4690196 Al Huxley
Al Huxley's picture

A nice little fake reversal in the miners yesterday, all the newsletters writing about 'miners outperforming'.  Ha ha!  What a setup, it never gets old!  Fuck, they JUST did that a month ago - fake breakout in the miners - don't people EVER learn?

Thu, 04/24/2014 - 09:50 | 4690332 rayban
rayban's picture

GDX chart shows a failed attack on 23.27 support on Monday, followed by a break of downtrend yesterday, still to be confirmed.

Thu, 04/24/2014 - 09:55 | 4690354 Againstthelie
Againstthelie's picture

Congrats!

Thu, 04/24/2014 - 09:32 | 4690241 shitco.in
shitco.in's picture

Gold and Silver are down, yet somehow my order from March 26th still hasn't shipped because of supply issues...

supply < demand = lower prices

 

Thu, 04/24/2014 - 09:44 | 4690283 TruthTalker
TruthTalker's picture

buy from ampex - orders ship on time

Thu, 04/24/2014 - 09:48 | 4690313 shitco.in
shitco.in's picture

They are one of my vendors, but charge sales tax to the state that I have them ship to.  

Thu, 04/24/2014 - 08:15 | 4689897 Hayabusa
Hayabusa's picture

Damn goldbugs never learn.

Thu, 04/24/2014 - 08:21 | 4689915 Xibalba
Xibalba's picture

I don't think goldbugs mess with the paper stuff

Thu, 04/24/2014 - 08:22 | 4689919 Grande Tetons
Grande Tetons's picture

Pounding the VIX tells me that not many value insurance. Gold getting pounded is not too surprising.

 

Thu, 04/24/2014 - 08:40 | 4689969 DaddyO
DaddyO's picture

+1

What the hell does the paper price matter?

If you're even a casual reader of ZH and other alternative news sites, you understand how deep the manipulation runs.

What has changed on the world stage to drive PM prices to their current levels?

Moar war, moar printing, moar banker deaths, moar, moar, moar...

Nothing has changed to the physical properties of the PM's many hold, remember that.

How long can the spring of suppression be held down?

The price of paper PM"s is inversely proportional to the stock market.

Every anti-PM writer will point to the stock market when it's zooming and decry PM's as a bygone relic.

IMHO, disregard the manistream notion of using paper assets as a hedge and buy and hold PM's as the ultimate hedge against the coming world turmoil.

DaddyO

Thu, 04/24/2014 - 09:10 | 4690106 drendebe10
drendebe10's picture

What turmoil? Everything is peachy keeny. Fudge packer in chief  just got an EBT csrd.

Thu, 04/24/2014 - 08:23 | 4689920 mayhem_korner
mayhem_korner's picture

 

 

Of course, it is the stealth gold bugs who are slamming the price down through the ETF veil.  The purpose of orchestrating cascading price drops is because they want to buy it as cheaply as possible.

Thu, 04/24/2014 - 08:39 | 4689959 Flux
Flux's picture

Goldbugs are silly. Harmless ...

But silly.

Would if I could educate them on the consequences of their worldview, but alas ... it seems preferable for them to live in eternal night.

This is ok if you are a vampire, ghoul, or maybe an emo. But otherwise, it kinda sucks.

 

Thu, 04/24/2014 - 08:45 | 4689998 Againstthelie
Againstthelie's picture

If I could educate the sheeple on the consequences to believe the globalists' phrases and the fairy tale of a "free press", which never existed until the internet accidentially broke the news monopoly of international high finance, but alas... it seems preferable for them to live in eternal night.

Thu, 04/24/2014 - 08:48 | 4690017 Xibalba
Xibalba's picture

to not own any shiney is to put your faith in those notes....those non-interest bearing ones issued by insolvent banks, and said banks are hoarding gold....hmmm.

Thu, 04/24/2014 - 08:55 | 4690041 SoilMyselfRotten
SoilMyselfRotten's picture

Fluxoff

Thu, 04/24/2014 - 09:02 | 4690061 Badabing
Badabing's picture

 fluxit gave yourself an up vote? LOL

Thu, 04/24/2014 - 09:05 | 4690082 Flux
Flux's picture

Actually no!

I had a PERFECT 17-0 score. My best yet!

And then some clown had to ruin it. People ... work with me.

Thu, 04/24/2014 - 10:00 | 4690385 CHX
CHX's picture

So you just forgot the /sarc in all your posts? If so, keep them posts rolling, quite entertaining actually.

Thu, 04/24/2014 - 08:47 | 4690008 DaddyO
DaddyO's picture

History is replete with examples of fire coming in the night.

Poof, paper burns.

Tangible assets endure.

Silver pierces the heart of the vampires, ghouls and MZB's...

DaddyO

Thu, 04/24/2014 - 08:52 | 4690027 Flux
Flux's picture

Actually, our new CAD is rubber. It more turns into a gooey mess when it burns. However, if your rub two 50s together, a scent of maple syrup wafts into the air.

It's true.

 

Thu, 04/24/2014 - 08:54 | 4690039 Againstthelie
Againstthelie's picture

Shekelblogger, how much do they pay?

Thu, 04/24/2014 - 09:03 | 4690069 Flux
Flux's picture

Well, I suppose whatever the exchange rate is ... but that's really beside the point. What you have with CAD is gooey maple syrup goodness. And that shit just don't grow on trees. Or get pulled out of the ground. In fact, I'm willing to wager ... it has a half-life of about 5.3 billion years.

I'd say place that in your peace pipe and smoke it, but it would get sticky fast.

What's a Shekelblogger?

Thu, 04/24/2014 - 09:12 | 4690126 mayhem_korner
mayhem_korner's picture

 

 

@Flux

The HD quality of your avatar is a dead give-away that you are a newborn troll bred in the backroom.  Possibly the spawn of MDB?  In any case, we look forward to your musings. 

Thu, 04/24/2014 - 08:41 | 4689983 Cattender
Cattender's picture

i wonder how long it will be before people will just Give up and put out their Gold with the other common trash at the curb? hey, maybe Debt REALLY IS WEALTH after all! that would mean if i Rack up a Huge amount on my BOA CC it would be a good thing.. right?

Thu, 04/24/2014 - 08:15 | 4689899 10mm
10mm's picture

Trucks in park just waiting to go in reverse. 

Thu, 04/24/2014 - 09:55 | 4690353 CHX
CHX's picture
BEEP BEEP BEEP BEEP...
Thu, 04/24/2014 - 08:18 | 4689905 mayhem_korner
mayhem_korner's picture

 

 

The only "technicals" that matter are the code lines in the HFT algos.

Thu, 04/24/2014 - 08:19 | 4689908 Took Red Pill
Took Red Pill's picture

Good! Time to buy more!

Thu, 04/24/2014 - 08:19 | 4689912 Charles Nelson ...
Charles Nelson Reilly's picture

Lower prices will definitely scare off the Chinese?!?

/:sarc

Thu, 04/24/2014 - 08:23 | 4689921 The worst trader
The worst trader's picture

Total JOKE!

Thu, 04/24/2014 - 08:23 | 4689923 TruthTalker
TruthTalker's picture

What do any of these numbers mean when we know it is manipulated and rigged?  NOTHING - they can dump shares and manipulate prices at whim so what do ANY analysis mean when you are dealing with corruption - not much.

Thu, 04/24/2014 - 08:29 | 4689943 fonzannoon
fonzannoon's picture

"What do any of these numbers mean when we know it is manipulated and rigged?"

it means that if you find yourself in the unfortunate position of needing to liquidate pm's to pay for things like food and energy and healthcare etc. that continue to go up then you are selling assets that are losing value in an environment where the things you need to consume in order to exist are rising in price, and pm's were supposed to be protection against that. That is what it means, whether people want to hear that or not.

Thu, 04/24/2014 - 08:36 | 4689962 TruthTalker
TruthTalker's picture

They are long term protection not short - anyone who is spending money they should be spending on food or survival things is not thinking clearly - food is going to be a huge asset and $ should be spent there first - savings that you can afford to live without for a while should go into hard assets - they will not be considered an asset while the corrupt regime is manipulating the market - but once they fail - and they will - your hard assets will come into play -

Thu, 04/24/2014 - 08:43 | 4689989 Grande Tetons
Grande Tetons's picture

A couple of grand in coffee and hooch. They will not go bad and will end up getting consumed if the shit never hits the fan. 

Thu, 04/24/2014 - 08:43 | 4689992 fonzannoon
fonzannoon's picture

You can't blanket the arguement like that. 90% of the people are falling through the cracks. Life is getting worse for them, and more expensive. It's been 5 years since they bailed out the banks and started QE, which was supposed to cause a currency collapse. So people back then, who started buying PM's as protection and now 5 years later need to tap those savings, are being forced to sell these assets at incredibly depressed prices as the things they need to use those savings on have consistently increased in price. It is what it is. 

Thu, 04/24/2014 - 08:51 | 4690029 Latitude25
Latitude25's picture

I maintain that the 1% who are stackers are not members of the 90% falling through the cracks.  Generally speaking that is.

Thu, 04/24/2014 - 08:56 | 4690044 fonzannoon
fonzannoon's picture

and 90% of baseball is half mental.

Thu, 04/24/2014 - 09:03 | 4690073 Latitude25
Latitude25's picture

You win.  You are more illogical than I am.

Thu, 04/24/2014 - 09:08 | 4690091 fonzannoon
fonzannoon's picture

LOL

Thu, 04/24/2014 - 08:56 | 4690045 Grande Tetons
Grande Tetons's picture

I here you Fonz. But, I think you are refering to those who over invested in PMs.  

Thu, 04/24/2014 - 09:04 | 4690076 fonzannoon
fonzannoon's picture

I am referring to anyone who has to liquidate their holdings today, for whatever reason. Anyone who does not can continue to hold them and purchase more of them and most likely continue to watch them lose out to stocks. Until the day comes when the fed loses the handle on everything. When that day comes you have to hope that the 99% of the zombie sheeple that have no gold, nor understand it's meaning, will play along with the idea that it should be money again.

I tend to agree with you. Buy some alcohol, some bullets and some other tangible goods and just go enjoy your life as best you can. Otherwise this will drive one insane.

Thu, 04/24/2014 - 09:19 | 4690177 mayhem_korner
mayhem_korner's picture

 

 

Good observation, fonz.  Those that accumulated PMs reactively, but did not have a strong enough "balance sheet" to endure the slow-boiling-frog assault, will capitulate.  But that's what the central planners are counting on - as few strong hands as possible.

I can and will wait them out, and these fabricated price machinations are just entertainment.

Thu, 04/24/2014 - 09:40 | 4690269 greatbeard
greatbeard's picture

>> are just entertainment.

If you find macrabre entertaining.  I don't particularly.  Of course Fonze is right.  I'm over invested in GLD.  Not so much so that I'll have to cash out when I'd rather not, but enough so that these false markets do tend to piss one off.  I can actually afford to live out my life comfortable, if frugally, without ever cashing in on any of it.  But I would rather enjoy more of the fruits of my labors.  But the ptb see fit to punish anyone who doesn't play along with their self serving system, as if that's any surprise.  And if my financial insurance policy ever proves it's worth, times will not really be worth living, IMO.  Kind of a catch 22.  On th bright side, I've got a bitchin' hobby farm I'm having a ball with, no debt, and quality of life, so Fuck Them.

Thu, 04/24/2014 - 09:03 | 4690075 john39
john39's picture

its a war of attrition.  if 'they' keep control, as much as i hate to say it, gold and silver are a loss.  but that does not mean i throw in the towel and buy facebook stock, or another fake investment...  we pick our battles where we can. buying PM's is one way to give them the middle finger.

Thu, 04/24/2014 - 09:05 | 4690083 SilverIsMoney
SilverIsMoney's picture

I hear ya Foz but its safe to say ive set my life up in a way Ill never have to sell anything and I never will until the reset happens. Until then, while tjis sucks, it just means we all have more time to prepare.

Thu, 04/24/2014 - 08:24 | 4689926 Kina
Kina's picture

Geopolitcal risk, especially in Europe, rises...therefore buy stocks, sell gold. LoL

And when you sell, it has to be thousands of contracts in seconds or minutes, in the off market, because that is the best way to get a high price......err...

The 'price' of gold will be whatever the corrupt TPTB and their corrupt banks and corrupt regulators at the CFTC, LBMA, BIS etc... decided they want it. These people are the Prince of Liars.

 

Nevertheless their back up plan is becoming increasing clear.....they will take every possible economic, military and geopolitical risk that they can....and if they fail their back up is simply, take everybodies money - from their accounts and assets.

This is what they will do and why they don't care...they know at the end they can steal all that you have...and of course like arrogant gamblers...they will blow that too...except the .01% will have it all.

Thu, 04/24/2014 - 09:44 | 4690284 RaceToTheBottom
RaceToTheBottom's picture

Welcome to Bizaro world.

Thu, 04/24/2014 - 08:24 | 4689929 medium giraffe
medium giraffe's picture

Things are looking pretty fucked today, even for the new-normal.  Closed out and not going near the US session.  You guys have fun in the meat grinder, I'll read all about it later.

Thu, 04/24/2014 - 08:25 | 4689931 OptionsHedge
OptionsHedge's picture

ZH has been pounding gold as the ultimate contrarian investment haven and investors following this advise over the last couple of years have been taken to the cleaners.

Thu, 04/24/2014 - 08:30 | 4689944 TruthTalker
TruthTalker's picture

Every good economist knows gold is a hedge against a collapsing economy - this administration has been able to manipulate ALL markets and all reported numbers - including gold/silver - that doesn't mean you let go of the only hedge in a dying economy because the powers that be want your $ in the game - not safe on the sidelines where they can't get it. 

Thu, 04/24/2014 - 08:37 | 4689965 Thalamus
Thalamus's picture

You have been deceived by their actions--mission successful for the corrupt bankers.

Thu, 04/24/2014 - 08:39 | 4689974 medium giraffe
medium giraffe's picture

+1 standing ovation.

Thu, 04/24/2014 - 08:44 | 4689996 messymerry
messymerry's picture

Hey Tyler,

I forget, when was the last time I sent you a commission check?  WHAT!  $50,000.00  Dude, you should be working for that nasty little leprechaun over at GS...

;-D

Thu, 04/24/2014 - 09:27 | 4690210 Charles Nelson ...
Charles Nelson Reilly's picture

ummm, who the fuck buys physical gold to turn a profit in less than 24 months?  Physical gold outside the banking system is for wealth preservation.  Not to buy at $1400, $1500 or $1600 and sell for $1800 and bank a few hundred bucks profit.

 

Thu, 04/24/2014 - 08:27 | 4689935 Kina
Kina's picture

Americans and all wake up now. At the end, when they collapse and need real assets....they will take all that you have and sequester all that you earn. That is the final game, and trap.

Thu, 04/24/2014 - 08:28 | 4689939 nathan1234
nathan1234's picture

Since Central Banks in the West, JPM. Goldman etc feel that Gold is an useless  asset why dont they sell all their Gold anyway and say it is not an asset anymore?

That only the fiat currency they deal in is an ASS-et.

The scum need to put their mouth where their ASSes are

 

Thu, 04/24/2014 - 09:51 | 4690335 youngman
youngman's picture

Because in their minds a synthetic derivitive is a much better thing.....go figure

Thu, 04/24/2014 - 08:33 | 4689946 MFL8240
MFL8240's picture

This is disgusting but so is everthing else about the US finacal market.  We are driven by fraud and deception!

Thu, 04/24/2014 - 08:33 | 4689950 fockewulf190
fockewulf190's picture

Silver looks like it will bust through $19.00.  How many more ounces do they want me to buy? C´mon Janet, give the order and blast this bitch down below $10 like it was back in 2008 when the financial world almost mushroon clouded...I´ll gladly fill my basement with this stuff.

Thu, 04/24/2014 - 08:36 | 4689954 NMFP
NMFP's picture

Have the fundamentals changed? Looks to me like we are on the edge of WW3, but there's a GOLDen ray of sunshine for anyone who can see through all the bollocks! 

Thu, 04/24/2014 - 08:47 | 4690010 Latitude25
Latitude25's picture

Yes that bright light you may see will be accompanied by a mushroom cloud.

Thu, 04/24/2014 - 09:38 | 4690255 NMFP
NMFP's picture

Agreed. I have a similar view to Antal E Fekete on gold. It's insurance, you don't take out fire insurance and hope the house burns down the next day. 

Thu, 04/24/2014 - 08:34 | 4689955 Thalamus
Thalamus's picture

Sorry that was me selling a few million ounces of precious metals all at once in a thin market to try and get the best price.   

Thu, 04/24/2014 - 08:39 | 4689973 Seasmoke
Seasmoke's picture

The criminals are not only shaking the trees, they are squeezing what falls out of the trees. Fuck them. DON'T consume , buy more physical 

Thu, 04/24/2014 - 08:43 | 4689994 negative rates
negative rates's picture

Hey, hows about you and me, get into physcial?

Thu, 04/24/2014 - 08:45 | 4689988 Latitude25
Latitude25's picture

Could it be that no one wants to buy paper contracts for gold?  I've been waiting for that day.  Expect Asian physical demand to go crazy but maybe the supply to Asia is drying up.  SGE withdrawls are down according to Koos Jansen.

Thu, 04/24/2014 - 08:43 | 4689990 OptionsHedge
OptionsHedge's picture

If these metals cannot hold there support even when geo-political events are unravelling its not encouraging for contrarian investors. Silver heading to 15 as metals complex remains under pressure. Gold to 1150.

Thu, 04/24/2014 - 09:22 | 4690191 mayhem_korner
mayhem_korner's picture

 

 

The price of metals cannot be observed.  We can only observe the marginal, algo-driven trade of ETFs.  Once you are clear on the sleight of hand that you are being fed, you too will be like Neo. 

Thu, 04/24/2014 - 10:24 | 4690487 TruthTalker
TruthTalker's picture

meanwhile back in the real world gold is climbing and so is silver - then they will dump more fake shares and we will climb again -

Thu, 04/24/2014 - 08:53 | 4690026 Calculus99
Calculus99's picture

I'm loving the smackdowns, long may they continue because I'm a buyer EVERY month.

Folks, let the scammers and skimmers play their short term games, let them win some battles, let them pop some champagne corks and laugh at you and me, the stupid buyers ( but with no margin you fuckers).

Gold to me is a NEVER expiring out-of-the-money call option with EMBEDDED value. How great is that? The downside to going long any option is timing because of the time decay. But with Gold there is NO time decay, only mark-to-market losses. But if no margin is used then M2M is irrelvant, and if you think it is, get real, stop being a pussy. 

Something is clearly up with the metal, the fact they keep slamming iis a clue even a retard should spot. We don't know what that something is, in reality it doesn't matter because it's 'something' and that's enough. The reality is this, as some other poster said right here - NEVER forget that the central planners are masters of backing themselves into a corner.

My advice is simple, keep adding into the weakness, keep your faith, something is up, the central planners and Wall Street is involved, that's all you need to know because with that, everything is baked into the cake.

Timing is the only thing we don't know, but fuck timing because we Gold holders have NEVER expiring out-of-the-money calls. As I said above, how great is that?

Thu, 04/24/2014 - 08:57 | 4690050 JPMorgan
JPMorgan's picture

At what price does all the physical gold disappear from the western vaults?

$1200? $1000? $800?

The game is over they have lost, they just don't know it yet.

Thu, 04/24/2014 - 09:24 | 4690198 mayhem_korner
mayhem_korner's picture

At what price does all the physical gold disappear from the western vaults?

 

At what price did all the physical gold disappear from the western vaults?

Thu, 04/24/2014 - 08:58 | 4690053 Kina
Kina's picture

As before, TPTB will make the paper price of gold to whatever they want..... until they cannot or no longer need to. And real price discovery is of no consequence to them...

 

I think that if the USD breaks down too much and people start to have real doubts over it...and gold begins to get its head it could self perpetuate into an avalanche...under such circumstances and volumes it would be impossible for TPTB to manipulate gold.

 

So..go the BRICS!

Thu, 04/24/2014 - 09:06 | 4690088 Kina
Kina's picture

People are used to the USA always having its way and doing whatever it wanted to, with little consequence. So they assume the future will have no dire consequences for the US. So they worry not about the USD, especially as it is a reserve currency.

However I see energy security as its achilles heal. Energy supply to Europe and the USA have a number of soft spots and in areas that can be volatile and upredictable.

 

The most simple example is...what happens to US markets and dollar if there was a major explosion in a big Saudi oil well(s)?  Such a thing is no threat to Russia, and other oil exporters.  OR a political chaos suddenly befalls Suad?

Thu, 04/24/2014 - 11:24 | 4690742 moonman
moonman's picture

http://www.csmonitor.com/var/ezflow_site/storage/images/media/content/20...

 

We would be more hurt by Canada or Mexico explosion

Thu, 04/24/2014 - 09:09 | 4690100 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

THEY WILL KEEP THIS GAME ON FOR DECADES. LOOK AT JAPAN. THE PLAYBOOK HAS BEEN EXPOSED.

Thu, 04/24/2014 - 09:26 | 4690206 mayhem_korner
mayhem_korner's picture

 

 

1. The yen is not the world's reserve currency.

2. Oil is not priced in yen.

3. The world has figured out that destruction of the dollar is the path to unseating the U.S. as the sole superpower.

Thu, 04/24/2014 - 09:27 | 4690209 CHX
CHX's picture

No they won't. The lower the price the higher the demand for physical metal, and sooner rather than later there won't be any weak longs left, but only strong-handed physical accumulators. I think we're close to the end of this vicous correction in the PM space, maybe THE low is already in, maybe a final wash-out (and a V-shaped recovery?) ? So no, this won't last for another 5, probably not even 3 years IMHO.

Thu, 04/24/2014 - 09:10 | 4690108 Calculus99
Calculus99's picture

Have any of the weak Longs sat down and thought that Wall Street might be their best friend right now via slamming the price of Gold?

We know how those fuckers work and think. They don't play for millions, they play for billions and as they cheat and rig, they more than not, get those billions.

I trade short term (20m) Forex and one of my bread and butter plays is to watch the boys setup the market, first they try to get everyone in, then they love to slam price to get them out. It's at the stage where they're getting them out that the boys are GETTING IN. Then, it's off to the races.

The beauty of that simple play, and it happens on ALL timeframes, is that now there's 2 sets of people to power price higher. First, it's the longs that just got stopped out (they want to get back in), second, the shorts who entered on the slam need to cover. Two sets of buyers mean more demand over supply, hence higher prices.

So the Wall  Street mob want the price of Gold lower and lower to -

1) Scare every weak long on the planet OUT

2) Get some shorts in

3) Turn the psyche of the market upside down - 'Gold is finished etc' - 'Keynes was right, it's a B. relic' etc

4) Most importantly, enable the boys to buy more at ever cheaper prices (thanks weak longs, we owe you so much)

Right now, all of the above 4 points are working, just like I reckon the boys have planned it all along.

I don't know about you, but I'm a buyer every month and I'm as cool as a cucumber with this weakness. If you're not, if you're worried about every $10 down, have you considered that you might be being played...

Thu, 04/24/2014 - 09:13 | 4690129 homiegot
homiegot's picture

I want to believe. I really do. It's just all that manipulation.

Thu, 04/24/2014 - 09:19 | 4690175 CHX
CHX's picture

It's paper gold that's down, and there is ~100x more paper gold traded each day than there is real physical gold available at these prices, so the paper pushers - whoever they are - can push the price around very easily. But a tight physical market, and prices around the costs of production should/will put a solid floor that if breached then only very shortly. Get some metal at bargain prices, it's for SALE, and @ 1050 or lower it will be the SELL OUT of the CONeX/LBMA. 

Thu, 04/24/2014 - 09:13 | 4690132 CHX
CHX's picture

It's Groundhog day - again... and again and again, until it isn't, and then the real fun starts. Gold down to 1050 (?), to 850 (??), to 35 (???), bring it on paper pushers, bring it ON.

Thu, 04/24/2014 - 09:17 | 4690159 Smuckers
Smuckers's picture

PMs: The one thing not rising due to inflation.   Love it.

 

Thu, 04/24/2014 - 09:27 | 4690211 orangegeek
orangegeek's picture

spot gold remains inside bear channel - no reversal yet

 

http://bullandbearmash.com/chart/spot-gold-daily-stalling-support-sidewa...

 

stronger USD will hurt gold's upside.

Thu, 04/24/2014 - 10:31 | 4690501 TruthTalker
TruthTalker's picture

Russia, China and Iran have all their deals inked and ready to go - the BRICS & company have their new central banking system ready and target date July - the world is moving quickly away from the dollar and this last ditch attempt to start WW3 will push many more away faster.  A strong USD is a joke - WAIT AND SEE

Thu, 04/24/2014 - 09:44 | 4690286 youngman
youngman's picture

I think its the Russians and Chinese speeding up their endgames....they have HFTs too...and will use them to get cheap metals.....they want enough to destroy the West...at least the US dollar...I think they have made this game number one right now...expect a lot more gold going east.....we will never know when a default happens in the delivery room....TPTB will keep that from us for sure....they will try to pass new rules and regulations to steal your gold first...and they will

Thu, 04/24/2014 - 09:48 | 4690301 Kreditanstalt
Kreditanstalt's picture

WTF?  Just happened?  Gold up to $1298+...?

Some paper game player got religion? 

Thu, 04/24/2014 - 09:53 | 4690344 Hulk
Hulk's picture

30 buck pop, not bad...

Thu, 04/24/2014 - 10:32 | 4690504 TruthTalker
TruthTalker's picture

they will bang it down again - and we will snao it up again

Thu, 04/24/2014 - 09:50 | 4690330 F.A. Hayek
F.A. Hayek's picture

...Now a reversal. Go fish your shiny out of the bottom of the loch and behold the beauty that for the moment isn't giving you an ulcer.

Thu, 04/24/2014 - 10:01 | 4690391 Calculus99
Calculus99's picture

Good example today of how the markets often work.

The weakness today WAS NOT weakness, it was FAKE weakness designed to a) get longs out and b) get some shorts in (breakout players). Plus, as with all good scare tactics, people don't like to buy when a bullet train is heading towards them.

Guess who was buying around the lows? Yep, it's the people who ORIGINATED the selling.

Folks, you can play or get played in this game, it's up to you...

The first thing to do if you want to play is to realise the markets are often in reverse to what you think (or the chart shows). Next time you see some major weakness, think hard about the fact that it might not be proper weakness, just the boys  faking things in order to setup a rally.

To be a success in this game you've got to screw your head on backwards. So much so that in order to comb your hair you have to turn your back to the mirror...

Thu, 04/24/2014 - 10:07 | 4690422 CHX
CHX's picture

Sweet reversal on the daily chart. Stop loss harvesting 101 on the down and on the upside.

Thu, 04/24/2014 - 10:51 | 4690607 raeb
raeb's picture

This PM volatility is mostly derivative related.  Today is options expiration and it happens every time.  When the derivatives blow up, and they will, gold and silver will be set free.  If you are not in physical at that point, you will pay dearly to get on board.

Thu, 04/24/2014 - 11:29 | 4690759 Mercuryquicksilver
Mercuryquicksilver's picture

The price of gold/oz does not affect my purchasing. I buy it whenever I have the funds available. Does day to day price fluctuation affect buyers in China and India? Not so much.

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