S&P Closes At New Record High As Gold Spikes Most In 9 Months

Tyler Durden's picture


US equity markets were unable to maintain any of the kneejerk, VIX-smashing jerk higher post-FOMC momentum from yesterday and closed unch to slightly red (after some US open exuberance ran all-time-high stops once again). Equities did catch some bid late on as rumors of AAPL iWatch spread. VIX hung very stable at around 10.6 providing some support for stocks. Away from stocks flatness, Treasuries had a violent day. Early strength following Yellen yesterday began to fade as US equity markets opened and yields pushed higher, then when the 30Y TIPS auction tailed, longer-dated bonds slammed higher in yield. There was a mild pullback rally into the close but 10Y ended +4.5bps (30Y +7bps, 3Y unch). The big news of the day - given how flat USD was - is the huge spike higher in gold (+3%) and silver (+4.4%) - the biggest jump in 9 months. Gold and Silver are back at 3-month highs (breaking back above $1300 and $20 respectively). Once again JPY carry entirely decoupled from stocks but a late-day modest melt-up dragged all the major indices (except Nasdaq) just into green for the day) but leaves the S&P lagging gold and silver year-to-date again. S&P 500 closes at another all-time high.


Stocks held yesterday's gains but did not build on them... the v-shaped recovery appears to been predicated around the tail in the TIPS auction...(and after Gold flushed through the 1300 stops)


As VIX went nowehere...


Credit was reluctanat to chase stocks higher...



Bonds cracked higher in yield...


But precious metals exploded higher...


As it seems a combination of Yellen's uber inflationist chatter but more likely the unwinds of CCFDs from the Qingdao probe...


Interesting that stocks sdtarted to recover bounce on no catalyst as soon as gold broke above $1300


This move pushed Silver and gold back above the S&P 500 YTD...



Charts: Bloomberg

Bonus Chart: AAPL "Surprise" an iWatch rumor... (priced in?)


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Thu, 06/19/2014 - 16:06 | 4875084 HedgeAccordingly
HedgeAccordingly's picture

its fine. –: “We’ve all enjoyed having Eric in the Congress”


Thu, 06/19/2014 - 17:19 | 4875310 max2205
max2205's picture

Warning... Lots of 3-5% reversals to the downside today


Thu, 06/19/2014 - 16:06 | 4875088 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Gold > 1300 ............#winning

Thu, 06/19/2014 - 18:43 | 4875593 midtowng
midtowng's picture

Looks like a short squeeze to me

Thu, 06/19/2014 - 16:06 | 4875089 LawsofPhysics
LawsofPhysics's picture

Collateral of real value?  What's that?  Give me more paper/digital promises!


Thu, 06/19/2014 - 16:21 | 4875103 Kaiser Sousa
Kaiser Sousa's picture

Both Silver and Gold traded off highs for most of the day...

then soon as they entered the "no one is really trading" Globex they immediately got taken down...

also watched the dow the last 15 minutes where volume was quoted as being around 36 million shares...

right at the close volume jumped to over 76 million to slam that fraudulent index into the green by 14 points...

no, there is no manipulation....


"Direct Yuan-Sterling trade begins:

Direct yuan-sterling trade begins
China’s central bank announced on Wednesday direct trading of the yuan against sterling. The announcement came after Chinese Premier Li Keqiang began his visit to London on Tuesday. “The direct yuan-sterling trade is good for forming a direct exchange rate between the renminbi and the British pound and reducing exchange costs,”  the People’s Bank of China (PBOC) said in a statement on its website.

The PBOC promised “active support” for yuan-sterling direct trading and the China Foreign Exchange Trading System said yuan-sterling direct trade will start on Thursday. Previously, the yuan-sterling reference rate was calculated on the yuan-U.S. dollar central parity rate, and the pound-dollar rate. As the two currencies can now be directly traded, the yuan-sterling rate will be set by the average prices offered by market makers before the opening of the interbank foreign exchange market.

The move should help London’s bid to become a renminbi offshore center. China has allowed direct onshore trade in a number of currencies to lower transaction costs, including the Japanese yen, Australian dollar, New Zealand dollar, Malaysian ringgit and Russian ruble. Currency swaps with foreign governments have increased overseas circulation of the yuan.

“Yuan-sterling trade is another important step toward internationalization of the renminbi,” said Helen Wong, president and chief executive of HSBC China, one of the market makers. Britain is China’s third largest trading partner and the second largest investor among European countries. Sino-British bilateral trade reached 70 billion U.S. dollars last year. The government is gradually relaxing its hold over the yuan and making it a global reserve currency. China is also under pressure to diversify its foreign exchange reserves–the world’s largest–which stood at 4 trillion U.S. dollars at the end of May."


Thu, 06/19/2014 - 16:27 | 4875156 IndyPat
IndyPat's picture

....."no one is really trading" Globex

Educational...and rip snorting funny at the same time.
Needed that.

Thu, 06/19/2014 - 16:13 | 4875110 astoriajoe
astoriajoe's picture

<---silver continues rally tomorrow

<---Silver gets slammed tomorrow.

Thu, 06/19/2014 - 16:37 | 4875136 Kaiser Sousa
Kaiser Sousa's picture

really doesnt matter...

as long as its in debt coupon dollar double digits ITS ON SALE...

until that time - i will not be moved...and will be stackin.

Thu, 06/19/2014 - 16:14 | 4875111 Rainman
Rainman's picture

iWatch ? ....the geeks will love it, anybody else nah.  

Thu, 06/19/2014 - 16:15 | 4875113 i_call_you_my_base
i_call_you_my_base's picture

No one wants a fucking iWatch.

Thu, 06/19/2014 - 16:27 | 4875154 NOTaREALmerican
NOTaREALmerican's picture

Applying the 1st law of bullshit:

stuff + bullshit -> bling.  

I'd say an iWatch might be pretty popular amongst our starving population who barely have enough to eat because of the huge rise in food and energy costs over the last decade. 

Thu, 06/19/2014 - 16:32 | 4875171 IndyPat
IndyPat's picture

Get ur iWatch...to help THEM watch.

Hell, now they can monitor the slaves BP and heart rate.

Awesome. I'll camp out for it.


Thu, 06/19/2014 - 16:17 | 4875117 SheepDog-One
SheepDog-One's picture

Just funny at this point to watch the last minute non-manipulation to slam stawks to new record highs. There. Done.

Thu, 06/19/2014 - 16:25 | 4875148 LawsofPhysics
Thu, 06/19/2014 - 16:22 | 4875134 you enjoy myself
you enjoy myself's picture

damn.  i sold my miners yesterday right before the FOMC minutes, assuming gold and silver would get their usual smackdown.  it really is weird to see them react properly to Yellen's dovish insanity.

Thu, 06/19/2014 - 16:22 | 4875135 Proofreder
Proofreder's picture

Please, there is nothing to see here.

Move along in an orderly fashion; buy order are being taken on the right.

We are not accepting sell orders or the purchase of puts at the moment.  Patience, serf.

Thu, 06/19/2014 - 16:26 | 4875150 Proofreder
Proofreder's picture

Peer the post, if you need assistance,

Go to Helen Wong!

(Read the tale, you cannot make better shit up than this)

Thu, 06/19/2014 - 16:33 | 4875175 NOTaREALmerican
NOTaREALmerican's picture

This Helen Wong?

 Helen Wong Psychic - Stockton, CA | Yelp

I recently received a reading fron Helen, and she was dead on with everything.  I was very surprised  that she was able to see that I have many relatives coming to town next month.  For the very first time, there are relatives that I have never met coming from all over the US for a family reunion.  My late husband showed up during the reading and gave a lot of input that could have only come  from him.  I left her feeling happy and very positive.  I adore Helen and trust her completely.

Thu, 06/19/2014 - 16:41 | 4875206 Proofreder
Proofreder's picture

Absolutely marvelous!  I ment this one ...

“Yuan-sterling trade is another important step toward internationalization of the renminbi,” said Helen Wong, president and chief executive of HSBC China, one of the market makers.

Thu, 06/19/2014 - 16:44 | 4875221 NOTaREALmerican
NOTaREALmerican's picture

Well,  really...  Who ya gonna trust more, a banker or a psychic? 

Thu, 06/19/2014 - 18:03 | 4875448 Winston Churchill
Winston Churchill's picture


Can I get back to you on that ?

Thu, 06/19/2014 - 16:25 | 4875146 LostPolarBear
LostPolarBear's picture


Thu, 06/19/2014 - 16:29 | 4875161 Rainman
Thu, 06/19/2014 - 16:36 | 4875186 NOTaREALmerican
NOTaREALmerican's picture

I weep for him! 

Thu, 06/19/2014 - 16:41 | 4875210 Da Yooper
Da Yooper's picture

winy bitch

Thu, 06/19/2014 - 16:49 | 4875235 youngman
youngman's picture

PMs are the last thing to BUBBLE...let er rip..its about time.....If you own CAT at all time highs....you might as well own PMs at all time highs...lest see $5,000 for gold....let er rip...

Thu, 06/19/2014 - 17:01 | 4875260 Space Animatoltipap
Space Animatoltipap's picture

And the famous broken clocks already start claiming fame on the gold dedicated websites because of their "great predictions", "sublime analysis" and "sharp views". Pretty laughable to say the least.

Thu, 06/19/2014 - 17:06 | 4875277 JuliaS
JuliaS's picture


Thu, 06/19/2014 - 17:10 | 4875286 starman
starman's picture

IDILDO is when I'll invest in AAPL!

Thu, 06/19/2014 - 17:20 | 4875315 MK ultra
MK ultra's picture

Don't get too excited.. the asians will piss away the gains tonight.

Fucking limp dicks...

Thu, 06/19/2014 - 17:30 | 4875343 Finnman
Finnman's picture

SP soon 2000 and DAX 11000, I promise it. Trust me!!

Best regards,


Thu, 06/19/2014 - 17:33 | 4875355 walküre
walküre's picture

The coin shop was busier than any new car dealership today.

FED and ECB have broken the system FUBAR. Maybe that was their plan all along, maybe they really thought they could put Humpty Dumpty back together again with paper glue. Nothing is working.

Dig in for the long haul, folks. This one's going to be for the history books.

Thu, 06/19/2014 - 19:15 | 4875722 Tegrat
Tegrat's picture

+8oz this month. Friggin lose them every time.

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