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Gold, & Silver Jump As Citi Sells All USD Positions Fearing "Squeeze"

Tyler Durden's picture




 

UPDATE: Every dip is to be bought...

 

After a week of punishment, precious metals are kneejerking higher this morning on the heels of a Citi FX note explaining they are cutting all USD longs - "This is an opportunistic exit as we feel we may be due for a squeeze of USD long positions similar to what happened at this point in the cycle last year." The USD Index is sliding quickly and Treasury yields inched higher (but remain -1.5bps despite equity strength).

 

As Citi notes,

US assets have significantly outperformed overall, with the US MSCI index outperforming all its G10 counterparts, while US fixed income outperformed all but European bonds (EUR-, GBP- and SEK-denominated).

 

Therefore the notional on currency hedges should be increased proportionately more on US assets, which may be USD negative.

 

 

Signals are between half and one historical standard deviation.

 

The USD Index is slding..

 

and PMs are moving higher...

 

Charts: Bloomberg

 

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Mon, 08/25/2014 - 08:33 | 5139852 ilion
ilion's picture

Would appreciate some USD weakness to take my overnight EUR/USD and GBP/USD long positions to the heaven.

 

Mon, 08/25/2014 - 08:49 | 5139920 Headbanger
Headbanger's picture

WHOOPDY FUCKING DOOOO  ABOUT THE USD INDEX!!!

http://www.marketwatch.com/investing/index/DXY/charts?symb=DXY&countryco...

You call that a big move tylers???


Mon, 08/25/2014 - 08:50 | 5139930 gmrpeabody
gmrpeabody's picture

Gold up , dollar down... oh, wait.

Mon, 08/25/2014 - 08:57 | 5139951 Squid-puppets a...
Squid-puppets a-go-go's picture

YAWN.... Ive seen looser trading ranges i a straight jacket

Mon, 08/25/2014 - 08:59 | 5139960 negative rates
negative rates's picture

When in need of a microscope, use a microscope.

Mon, 08/25/2014 - 10:05 | 5140284 BaBaBouy
BaBaBouy's picture

The BULLSHIT Manip Of GOLD Goes On...

The Main Support For USD Strength Is The Paper Selldown Of GOLD.

This STORY Is Getting Very Very Very OLD...

Mon, 08/25/2014 - 09:07 | 5139981 Bokkenrijder
Bokkenrijder's picture

Wow! Stop the press: gold is up $2-3!! Poof, aaaaaaannnnnd it's gone!

Just like CNBC has stock to sell, ZH has gold to sell.

Stop flogging a dead horse!

Mon, 08/25/2014 - 09:31 | 5140092 Cpl Hicks
Cpl Hicks's picture

Meltdownnnnnnn!

Just saying.

Mon, 08/25/2014 - 09:53 | 5140229 Bokkenrijder
Bokkenrijder's picture

I guess Gold and Silver just un-jumped again. Or is it de-jumped?

Mon, 08/25/2014 - 08:30 | 5139856 thatthingcanfly
thatthingcanfly's picture

Wake me up when gold is north of $1900.

Mon, 08/25/2014 - 08:32 | 5139866 RattNRoll
RattNRoll's picture

1400.00 would get me excited even.

Mon, 08/25/2014 - 08:40 | 5139896 J S Bach
J S Bach's picture

Gold blips upward 1 point and it's a noteworthy "jump" on ZH.  Let's see... that's less than 1-tenth of 1 percent.  Why do I even bite on these articles that Tyler posts?

Mon, 08/25/2014 - 08:45 | 5139911 GetZeeGold
GetZeeGold's picture

 

 

Gold is the most managed substance on this earth.....you gotta be crazy to try and predict that.

Mon, 08/25/2014 - 08:53 | 5139946 kliguy38
kliguy38's picture

hmmmm.......how bout silver? now THAT is managed

Mon, 08/25/2014 - 09:01 | 5139972 J S Bach
J S Bach's picture

I think most of us click on these posts because we subliminally know that the "Trending Articles & Offers" just below the stories always have chicks with big tits, deformed piglets or old geezers doing push-ups.  Now that's entertainment.

Mon, 08/25/2014 - 10:21 | 5140358 Ozy_mandias
Ozy_mandias's picture

I only come for the comments. And to up vote people who think like me. Makes me feel special.

Mon, 08/25/2014 - 08:52 | 5139940 Ivanovich
Ivanovich's picture

It has become rather sensationalist, hasn't it.

Mon, 08/25/2014 - 09:12 | 5139999 lunaticfringe
lunaticfringe's picture

Wake me up when gold is north of $1900.

I'm not sure I'll be around in 20 years.

Mon, 08/25/2014 - 09:31 | 5140089 Bokkenrijder
Bokkenrijder's picture

Yes, that will be the day that all those goldbugs here will exclaim en mass: "See! We told you gold would go up! The recovery of the gold price is just around the corner, if you look real close you can even see some green shoots! Any minute now..."

Mon, 08/25/2014 - 08:30 | 5139859 Dr. Engali
Dr. Engali's picture

I really prefer that gold and silver get knocked down further. but, that's just me, I'm a tightwad who likes to get moar for his fiat.

Mon, 08/25/2014 - 08:34 | 5139870 nightshiftsucks
nightshiftsucks's picture

Buying a little at a time,waiting for this shit show to blow up but in the end the longer it goes on the better off i am.

Mon, 08/25/2014 - 08:34 | 5139871 remain calm
remain calm's picture

hurry up, CB won't be able to keep prices low much longer.

Mon, 08/25/2014 - 09:13 | 5140007 lunaticfringe
lunaticfringe's picture

Dr. Tightwad to the coin shop. Stat.

Mon, 08/25/2014 - 08:32 | 5139864 Lionhearted
Lionhearted's picture

Dang! And I did'nt BTFD.

Mon, 08/25/2014 - 08:34 | 5139869 Talleyrand
Talleyrand's picture

Yeah, hell of a jump.

Mon, 08/25/2014 - 08:34 | 5139880 aleph0
aleph0's picture

$1270 - $1280 is hardly a jump .

All within "normal manipulation parameters"

A Jumps is +$200 ... anything else just the usual manipualtion.

Mon, 08/25/2014 - 08:38 | 5139892 Cattender
Cattender's picture

the paper motherfuckers are running the show.. pump and dump.. 

Mon, 08/25/2014 - 09:27 | 5140071 GetZeeGold
GetZeeGold's picture

 

 

$1270 - $1280 is hardly a jump

 

Thank you Captain Obvious.....anything else?

Mon, 08/25/2014 - 08:52 | 5139937 Mi Naem
Mi Naem's picture

Hyperbolic rhetoric seems required of Tyler's typists. 

Mon, 08/25/2014 - 08:55 | 5139948 foxenburg
foxenburg's picture

@aleph0. And it seems to find it much easier to jump down 200 than jump up 200.

Mon, 08/25/2014 - 09:13 | 5140011 aleph0
aleph0's picture

"jump down 200 " .. also within "Normal Manipualtion Parameters"

CNBS is quick to cheer AAPL rising 10% .... or even  8,750% ( 8$ - 700$ pre split )

But if Gold even dares to move +2% ... it gets a hammering.

Mon, 08/25/2014 - 08:37 | 5139886 Sudden Debt
Sudden Debt's picture

This is what it takes to bring silver up 10 cents...

and a fart can push it down 2 dollars in a week...

Mon, 08/25/2014 - 08:38 | 5139890 buzzsaw99
buzzsaw99's picture

hear C roar with those massive positions. bug lulz

Mon, 08/25/2014 - 08:43 | 5139902 Hongcha
Hongcha's picture

I see Au down $2 on the session and Ag up $.03.  I too am hoping for a washout and new lows, particularly silver.  I expect to see it by end of the month.  One star for this timewaster.

Mon, 08/25/2014 - 08:56 | 5139903 ebworthen
ebworthen's picture

Ah yes, the cycles, the rotation, the slosh, the 1% "corrections", the non-stop ramp of cotton candy equities.

Quick, somebody sell some paper gold to crush tangible Gold, sell transports and buy tech., sell biotech and buy retail, sell utilities and buy crude.

Now have a central banker jawbone markets with the possibility of selling our kids down the river further with another $1 Trillion of debt for the money-changers.

Lather, rinse, repeat.

Mon, 08/25/2014 - 09:35 | 5140109 Cpl Hicks
Cpl Hicks's picture

You heard all that on Mad Money last week, right?

Mon, 08/25/2014 - 08:43 | 5139906 SlipStitchPass
SlipStitchPass's picture

I am getting close to admitting defeat. When the metals make there final move to balance the currency/debt/derivatives it will be too late unless you have left the USSA.

I wonder who is going to want to go to war for these bankers because that is where we are headed.

Mon, 08/25/2014 - 08:47 | 5139915 ebworthen
ebworthen's picture

This grammar nazi is close to admitting defeat on "their" versus "there".

 

There = "over there" or "here" with a "t".

Their = "their car" or "heir" with a "t".

When metals make their final move to balance the ponzi is when their purchase or sale will be outlawed and .gov will get rid of paper/coin currency and move to 100% digital so it can all be captured.

Mon, 08/25/2014 - 08:50 | 5139929 Mi Naem
Mi Naem's picture

Nazi is capitalized.  They're, i fixed it for ya. 

Bwaaaahahahahahaha.  

Mon, 08/25/2014 - 09:32 | 5140098 ebworthen
ebworthen's picture

Zing!  You got me.  Good work.

Mon, 08/25/2014 - 08:49 | 5139921 El Hosel
El Hosel's picture

The Fed dumps trillions of dollars into the rigged "System" for several years... That would be bullish for metals boys and girls, only on problem.

 

Mon, 08/25/2014 - 08:49 | 5139925 Bioscale
Bioscale's picture

Who? > 200 mil of bravely brainwashed US citizens who have no clue how the world works outside of their county.

Mon, 08/25/2014 - 08:45 | 5139913 Chupacabra-322
Chupacabra-322's picture

Ah yes. The orchestrated incremental collapse. Death by a thousand paper cuts.

Mon, 08/25/2014 - 08:52 | 5139933 jharry
jharry's picture

You're spot on aleph0.  Nothing will change until the winner of this banker led money war is decided. 

In a war there are no rules.  Warrior bankers are not held to account for their deeds (for the most part).

How long will it last?  That's the 2 quadrillion dollar question.

Mon, 08/25/2014 - 08:52 | 5139935 LawsofPhysics
LawsofPhysics's picture

And treasuries continue to be bought...

 

Laughable.

 

Mon, 08/25/2014 - 08:55 | 5139949 Byte Me
Byte Me's picture

Utter. Durden. Bullshit.

Mon, 08/25/2014 - 08:57 | 5139952 Seasmoke
Seasmoke's picture

Really , where ?

Mon, 08/25/2014 - 09:01 | 5139966 Billy Sol Estes
Billy Sol Estes's picture

Gold up $3!!!

Time to post an article!

Mon, 08/25/2014 - 09:18 | 5139973 agent default
agent default's picture

And then slapped back down again...

Mon, 08/25/2014 - 09:04 | 5139978 Infinite QE
Infinite QE's picture

Gold is still missing a zero at the end of its price.

Mon, 08/25/2014 - 09:27 | 5140066 Cattender
Cattender's picture

Infinite QE:::: Gold is missing a zero at the end of it's PRICE.. LOL! when you can simply PRINT ALL YOU WANT (as they do) you must Proove to the sheeple how well things are working... 

Mon, 08/25/2014 - 09:08 | 5139988 lunaticfringe
lunaticfringe's picture

Another short lived "rally" completed.

Last week, I was actually thinking of buying some more metal and then I thought, "why bother?" The trend is clearly down once again and I might as well wait for the secret "quadruple bottom" which will surely signal the great run up.

I am not Chumbawamba.

Mon, 08/25/2014 - 09:16 | 5140021 Byte Me
Byte Me's picture

No. Durden. Defence. Anywhere. To. Be. Seen.

(Look bub(z) - we all fuck up - it's part of the human condition. At least ADMIT it! - and move on..)

Mon, 08/25/2014 - 09:49 | 5140199 Byte Me
Byte Me's picture

Too much Russian pride?

Mon, 08/25/2014 - 09:35 | 5140121 Moe Howard
Moe Howard's picture

Silver's up .03 cents.

Waiting for a dip.

Mon, 08/25/2014 - 09:50 | 5140204 p00k1e
p00k1e's picture

Can someone explain to me what 'Gold, & Silver Jump' actually means.....

I’m checking a popular website and they show gold down and silver about even.

TIA.  

Mon, 08/25/2014 - 10:32 | 5140403 RaceToTheBottom
RaceToTheBottom's picture

I think it means that the dollar printing machine jammed for a few minutes.

Mon, 08/25/2014 - 11:24 | 5140650 cpnscarlet
cpnscarlet's picture

Can you imagine how F****ing huge a move we'll get in Q4 to make Bo Polny's forecast good? I'm sure Santa wiill be so proud of his protege once we break 2000 sometime before 12/31.

And Charles Nenner will be the great hero when we see 2100 sometime in January. Can hardly wait for the great Christmas I'm going to have.

Of course if they're wrong, then we'll just wait and see if Armstrong is right.

(F'em all at this point, really.)

Mon, 08/25/2014 - 12:36 | 5140922 disabledvet
disabledvet's picture

Who?

Citi-poop?

Mon, 08/25/2014 - 14:38 | 5141371 brainlpb
brainlpb's picture

Which Citi analyst was this? Just back on August 14th Tom Fitzaptrick put out a chart predicting USDX going up... see Chart Of The Week & Vladimir Putin & Chaos Around The World on King World News archives to potentially 84 (bad for gold).

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