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Gold Jumps Above $1320 As Bunds, Treasuries Hit New Cycle Low Yields

Tyler Durden's picture




 

With the USDollar giving up all the week's gains this morning on the heels of EUR strength (repatriation), weak claims data coupled with import prices sparked a leg higher in gold and leg lower in the yields of bonds on either side of the Atlantic. Gold poked its head above $1320 briefly, having been smacked lower twice overnight. 10Y US Treasury yield is now 2.39%.German 2Y yields traded at -1bp, there lowest in 15 months as 10Y Bunds dropped below 1% for the first time ever. Equity futures are fading back into the red.

 

Gold jumped on US claims and import price data...

 

as The Dollar tumbled...

 

Treasury yields hit new cycle lows...

 

With equities giving up overnight gains...

 

The early jerk higher gains were driven by yet another hope for de-escalation...

 

Charts: Bloomberg

 

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Thu, 08/14/2014 - 09:02 | 5091707 Eyeroller
Eyeroller's picture

Will gold get bitch-slapped today?

Thu, 08/14/2014 - 09:17 | 5091768 SoilMyselfRotten
SoilMyselfRotten's picture

Annnnnnd it's gone

Thu, 08/14/2014 - 09:20 | 5091790 JailBank
JailBank's picture

Probably. These guys have nothing else to do than dump $1 billion in futures on gold that does not exist anywhere in the world on to the open market.

Thu, 08/14/2014 - 09:23 | 5091811 negative rates
negative rates's picture

Gold jumps, treasuries stumps.

Thu, 08/14/2014 - 09:37 | 5091877 GetZeeGold
GetZeeGold's picture

 

 

Annnnnnd it's gone

 

We call that lightning freakin speed.......codenamed......protect the enchilada.

Thu, 08/14/2014 - 10:48 | 5092185 MalteseFalcon
MalteseFalcon's picture

New title for article:  "Gold jumps around in it's trading range"

Thu, 08/14/2014 - 11:11 | 5092287 silverer
silverer's picture

They'll get by with this for awhile until the BRICS countries ask for contract delivery in REAL gold instead of paper cash.  Gee, how embarassing will that be?

Thu, 08/14/2014 - 09:23 | 5091810 TeamDepends
TeamDepends's picture

Speaking of gone, we have a new spot price fix for silver, the LSP. Tyler, you should post a thread because we read that they can't/won't be held responsible for their prices!

Thu, 08/14/2014 - 11:11 | 5092288 TeamDepends
TeamDepends's picture

Thanks

Thu, 08/14/2014 - 09:23 | 5091812 Rubbish
Rubbish's picture

Monopoly money can do as it wishes and does daily. Fighting it is a lesson in futility.

 

Stack and forget about it.

Thu, 08/14/2014 - 09:28 | 5091830 Dr. Engali
Dr. Engali's picture

Already did.

Thu, 08/14/2014 - 09:03 | 5091708 SilverIsMoney
SilverIsMoney's picture

Already back to $1314....

Manipulation at its finest... smash before claims to contain the spike and then smash again after the spike now back where we started.

Thu, 08/14/2014 - 09:17 | 5091769 Kaiser Sousa
Kaiser Sousa's picture

keen observation...the usual bullshit meant to discourage continued dumping of debt coupon dollars for real money...
btw: had ur name sakes monogramed on my Titlelist ProV1's on the way...
cheers and keep stackin...

Thu, 08/14/2014 - 09:03 | 5091711 Volaille de Bresse
Volaille de Bresse's picture

And Donetsk is being pummeled with bombs...

Long live the UE/NATO fascism!

Thu, 08/14/2014 - 09:18 | 5091782 Headbanger
Headbanger's picture

Here comes that Russian "humanitarian aid", like it or not!

And don't fuck with it Barry!

Thu, 08/14/2014 - 09:21 | 5091799 power steering
power steering's picture

Smrt Fazicism

Thu, 08/14/2014 - 09:05 | 5091718 buzzsaw99
buzzsaw99's picture

welcome to the party pal

Thu, 08/14/2014 - 09:30 | 5091720 Squid Viscous
Squid Viscous's picture

the pig men are getting alot of mileage out of this de-escalation, aren't they?

Thu, 08/14/2014 - 09:09 | 5091736 IronShield
IronShield's picture

Try as they might, there is only one PM that will carry you through the coming crisis and that is gold.  Get you some!  Much better to be a year early than a minute late.  And the clock is ticking rather loudly at the moment...

Thu, 08/14/2014 - 09:49 | 5091933 foxenburg
foxenburg's picture

@iron. in my case 3 years early. and getting earlier.

Thu, 08/14/2014 - 09:59 | 5091974 samcontrol
samcontrol's picture

so having other PMs is bad?

Fuck you ruined my afternoon of skiing.

Thu, 08/14/2014 - 09:11 | 5091744 nobodysfool
nobodysfool's picture

German 10yr Bund hit's All-Time Low below 1.00%...then U.S. 10yr at 2.40 doesn't make a lot of sense. US rates going lower...be ready to REFI into a 3% 30yr Mtg! Woohoo! Guess the world has arrived at the hand basket.  Bravo, well done.

Thu, 08/14/2014 - 09:27 | 5091827 LawsofPhysics
LawsofPhysics's picture

yes, unfortunately, people will be refinancing so that they can afford to buy some bread.

Thu, 08/14/2014 - 09:12 | 5091747 Kaiser Sousa
Kaiser Sousa's picture

does this chart look the least bit suspicious (fraudulent)?????? the same pattern day after day???

http://www.kitco.com/charts/livesilver.html

Thu, 08/14/2014 - 10:29 | 5091781 El Hosel
El Hosel's picture

"Jumper"

     http://finviz.com/futures_charts.ashx?t=GC&p=w1

                                                                            Not so much.

 

http://finviz.com/futures_charts.ashx?t=SI&p=w1  The machine are "owning" what used to be all the markets.. We don't have any fucking markets.

Thu, 08/14/2014 - 09:18 | 5091780 madbraz
madbraz's picture

treasuries hit cycle lows quite a few days ago, in overnight trading.  it just happens that one such kevin henry exists (to the seeming delight of a few primary dealers who are short treasuries) and pushed his buttons between 5-8AM so that cash markets and CNBC, reuters, bloomberg et al presstitutes didn't have to report and drag "markets" lower, if there is such a thing in this corrupt world.

Thu, 08/14/2014 - 09:25 | 5091820 LawsofPhysics
LawsofPhysics's picture

"fixed"

/s

 

Thu, 08/14/2014 - 10:35 | 5092118 vulcanraven
vulcanraven's picture

Bund..... James Bund.

Thu, 08/14/2014 - 10:50 | 5092197 Kaiser Sousa
Kaiser Sousa's picture

Aug 13 (Reuters) - A federal judicial panel on Wednesday ordered that 18 lawsuits alleging a conspiracy to manipulate gold prices be consolidated into one proceeding in New York. The cases will be sent to U.S. District Judge Valerie Caproni in Manhattan, who has already been overseeing more than two dozen cases.

The lawsuits name the multinational banks that make up the London Gold Market Fixing Ltd, the company operating the global gold price benchmark known as the 'fix'. The century-old gold fix is a standard price for the metal that the banks set twice a day over the telephone. A variety of gold traders claim they were harmed by a scheme to manipulate the fix.

Sending the cases to Caproni of New York appeared to be a relatively easy decision for the U.S. Judicial Panel on Multidistrict Litigation, which considers requests to consolidate related lawsuits in U.S. federal courts.

Only one of the 18 lawsuits was not filed in New York, according to the panel. Bank of Nova Scotia, HSBC, Societe Generale and Barclays make up the London Gold Market Fixing Ltd."

Thu, 08/14/2014 - 10:58 | 5092226 Kaiser Sousa
Kaiser Sousa's picture

read it...

"The silver-pricing method begun during the reign of Queen Victoria ends today in London as the $5 trillion market shifts to a more transparent process and regulators expand scrutiny of how commodity benchmarks are set.

An electronic, auction-based mechanism will replace a ritualized negotiation among a few traders that’s been in place for 117 years. Silver becomes the first of the precious-metals markets to ditch a daily “fixing” procedure where dealers agree to a price over the telephone. Revamps also are planned this year for fixings in gold, platinum and palladium."
http://www.bloomberg.com/news/2014-08-14/silver-price-going-electronic-i...

Thu, 08/14/2014 - 12:54 | 5092876 walküre
walküre's picture

An article mentioning gold and bunds in the same context has my attention ESPECIALLY since just today the frontpage of Handelsblatt.com declares that the gold rush is over.

Handelsblatt claims the Asian buying interest has supposedly gone down 50%.

Nevermind the stats they claim they have which are just as bogus as all the other stats. The miners don't seem to have a problem getting rid of the metal. Miners shares have been on a steady incline for a while now.

Gold is being talked down and Handelsblatt is obviously trying to discourage German gold holders and potential gold buyers from increasing their positions, maybe even encouraging them to give up some of their stash.

They shouldn't have said anything. This is bullish for gold imo as all gold related information from the financial press is using reverse psychology.

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