Gold Pops & Oil Drops As Initial Bond/Stock/EUR Exuberance Fades

Tyler Durden's picture


It was all fun and games until Draghi started speaking... the initial exuberance of what sounded like QE but wasn't really sent EUR to 1.35, stocks higher, and Treasury yields soaring. Then as reality sunk in that it was just not all that much... Gold started to surge, EUR rally back, stocks fade, and Treasurys rally... WTI crude is falling and Bitcoin is rising. We're gonna need a bigger QE, Mario.



WTI Crude is dumping too...


Charts: Bloomberg

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Thu, 06/05/2014 - 09:08 | 4826388 JustObserving
JustObserving's picture

The Fed has huge experience in dropping gold. It will be lower soon.

Thu, 06/05/2014 - 09:24 | 4826441 GetZeeGold
GetZeeGold's picture



Does that mean Germany will now get it's gold back?

Thu, 06/05/2014 - 09:35 | 4826506 NoDebt
NoDebt's picture

Nooooooo.  You've not been paying close enough attention.

Thu, 06/05/2014 - 10:40 | 4826760 Goldenballz
Goldenballz's picture

shouldnt gold and oil move in the same direction??

Thu, 06/05/2014 - 11:21 | 4826880 BC6
BC6's picture

Gold is a lot easier to move north of the equator, for example, from Ecuador to GS. It's much harder to move, some say impossible to move trans-atlantic.

Not sure if you've ever been down under, but I used to sail with the Kiwis and when you flush the toilet, the water goes down the opposite way ... it's trippy.

Thu, 06/05/2014 - 09:09 | 4826394 Dr. Engali
Dr. Engali's picture

Next up.... Gold gets monkey hammered with $450 million  sell order.

Thu, 06/05/2014 - 09:11 | 4826399 Took Red Pill
Thu, 06/05/2014 - 09:12 | 4826401 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

Gold slowly trucks on downward on lower volume. Cue the monkey hammer to really get that insolent metal back where it belongs. 

Thu, 06/05/2014 - 09:27 | 4826469 valley chick
valley chick's picture

Never let a good sale go to waste!  :-) 

Thu, 06/05/2014 - 09:12 | 4826405 dressguard
dressguard's picture

Why is everybody unhappy about NIRP? If I take a loan I will be paid for it!!! This is how you make money in a sound economy!!!

Thu, 06/05/2014 - 09:13 | 4826408 asscannon101
asscannon101's picture

'I'ma go an getta de bazooka'...

Thu, 06/05/2014 - 09:13 | 4826410 Oscar
Oscar's picture

Prediction: Gold and silver will now be managed lower to the unchanged mark and then move sideways in an unnaturally tight range

Thu, 06/05/2014 - 09:15 | 4826413 Ban KKiller
Ban KKiller's picture

BP? The gulf oil spill will not be "cleaned" up in your grandchildren's lifetime. Exxon Valdez caused permanent damage, ask the fishermen. Had to comment as BP is putting ads on ZH. Take their money, that is fine but know the enemy. 

Will oil drop as reserves are filled? As demand drops? I hope PMs stay on sale. 

Thu, 06/05/2014 - 09:20 | 4826428 what's that smell
what's that smell's picture

as BP is putting ads on ZH

use google's chrome and adblockplus if pesky BP ads ruining your zhedge experience.

Thu, 06/05/2014 - 09:41 | 4826479 oddjob
oddjob's picture

I'd rather see the BP ads than use NSA chrome endorsed by Reggie.

Thu, 06/05/2014 - 09:20 | 4826430 SheepDog-One
SheepDog-One's picture

You hope PM's stay 'on sale'? Well you have to hope they go up at some point surely.

Thu, 06/05/2014 - 12:03 | 4827028 Ban KKiller
Ban KKiller's picture

Don't call me Shirley. 

Thu, 06/05/2014 - 09:19 | 4826424 valley chick
valley chick's picture

What? The thrill is already gone on that quickie?

Thu, 06/05/2014 - 09:19 | 4826425 firstdivision
firstdivision's picture

Gold will go much, much higher.  Draghi just told the population of the EU, don't put your euros in the bank, convert to PM's. 

Thu, 06/05/2014 - 09:22 | 4826437 foxenburg
foxenburg's picture

@firstdivision. jesus, first, you're almost certainly talking crap, but golly i love to hear it. tell me some more. much, much higher. mmmmm. MOAR!

Thu, 06/05/2014 - 09:26 | 4826459 GetZeeGold
GetZeeGold's picture



Hold that beachball underwater.....focus dammit!

Thu, 06/05/2014 - 09:24 | 4826443 orangegeek
orangegeek's picture

USD up, commodities down.  US indexes are still hanging in there - may not be for much longer.

Thu, 06/05/2014 - 09:25 | 4826457 JustObserving
JustObserving's picture

Silver has already given up 60% of its maximum gain.  Gold has only given up 40%.  What's taking so long for this manipulation?

Thu, 06/05/2014 - 09:36 | 4826508 Exponere Mendaces
Exponere Mendaces's picture

Bitcoin may be moving for another reason, there was a recent CNBC piece with the head of eBay insinuating that they'll be using Bitcoin, and that he holds BTC himself.

Nice coincidence, though. ECB has proven they can't manage a currency out of a paper bag. Surprised Germany hasn't told them to get stuffed yet.

Thu, 06/05/2014 - 09:55 | 4826611 Counterbalance
Counterbalance's picture

Does this mean we can talk seriously about Bitcoin's 50% melt-up now?


Thu, 06/05/2014 - 09:56 | 4826616 pound the vix
pound the vix's picture

Financials up, real economy down.  Shocker

Thu, 06/05/2014 - 09:56 | 4826617 samcontrol
samcontrol's picture

maybe my all in retard move in silver options works out....

Thu, 06/05/2014 - 10:02 | 4826628 Spungo
Spungo's picture

"Draghi just told the population of the EU, don't put your euros in the bank, convert to PM's."

I don't think the west has a culture of owning metals anymore. Saying you own gold is like saying you're a conspiracy theorist. The negative interest rates will more than likely end up creating an even bigger junk bond bubble.

The shame is that most people don't understand how junk bonds work. Junk bonds are a fantastic investment for a while because they work similar to a ponzi scheme. As long as there is loose credit, a company can always borrow more money to pay the interest on the money it borrowed yesterday. The ponzi scheme quickly ends when credit dries up and companies start defaulting on their high interest debts. 

Thu, 06/05/2014 - 10:23 | 4826694 highly debtful
highly debtful's picture

"I don't think the west has a culture of owning metals anymore." 

I wouldn't be too sure about that. At least here in Europe a lot of the older folk still hold physical gold, and not only in Germany. You don't go through two long term military occupations without learning a thing or two about food rationing and economic hardship. You'd be surprised how many vegetable gardens you can still find throughout West and East Europe.    

Thu, 06/05/2014 - 10:33 | 4826736 MeMongo
MeMongo's picture

Mongo thinks spungo is funny:-) further Mongo thinks spungo might be Michael Milken!

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