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Asian Gold Traders Suspicious Of Recent "Turbo Steroid Moves"
It will come as no surprise to regular readers that gold (and silver) have suffered from 'odd' violent down-slams in the last few months but, as Bloomberg reports, those 'sneak-attacks' have become increasingly more prevalent during the thin illiquid hours of the Asia trading session. "It is unusual for Asia to be seeing these busy trading sessions," notes on trader, adding that "consensus seems to be that there is a big increase in algorithmic and high-frequency trading in this time zone." The trend began on Oct. 31, with gold futures falling $11 in a minute on nearly 9,000 lots (20x the norm) - all happening when the Chinese market is at lunch. As one Hong Kong precious metals trader remarked, "someone is utilising these thin trading volumes to get a turbo steroid move."
Some of the biggest price moves in gold since late October have, unusually, occurred in Asian hours and traders more accustomed to following the lead of their Western counterparts suspect a big increase in algorithmic trading may be to blame.
Some traders speculated that the timing looked suspiciously like attempts to catch Chinese traders off-guard during their lunch break.
Liquidity in Asia tends to be thin until Europe wakes up but recent weeks have been different: COMEX gold futures, the busiest gold contract in the world, have suffered sharp sell-offs in Asia, sometimes sparked by the news flow or currency moves but often for no identifiable reason.
"It is unusual for Asia to be seeing these busy trading sessions," said David Govett, head of precious metals at broker Marex Spectron in London.
"I have spoken to a lot of people about it and the general consensus seems to be that there is a big increase in algorithmic and high-frequency trading in this time zone nowadays as it can be quite easy to push about," he said.
The trend began on Oct. 31, when U.S. gold futures fell through a major technical level of $1,180 an ounce at around 3 p.m. Singapore time (0700 GMT). They fell $11 in a minute and nearly 9,000 lots were traded in five minutes, compared with just 535 lots in the five minutes preceding the drop.
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In the days following the first dip, gold tumbled 1 percent or hit new lows almost every other day around the same time, between 12:45 p.m. and 1:45 p.m. Singapore time.
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The price lurches that took the market lower often happened when traders in top gold consumer China, which usually provides support for the metal, were out for lunch.
"Someone is utilising these thin trading volumes to get a turbo steroid move," said a precious metals trader in Hong Kong.
Traders in Tokyo have also noticed that the falls tend to happen a few minutes before their markets are set to close.
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"At one point in the last two weeks, there was huge selling at around the same time every other day," said a trader in Tokyo. "Some people noticed that and went short just before that particular hour."
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"We are taking much smaller positions in gold and keeping it very simple because there is lots of uncertainty out there."
* * *
Perhaps a call to the BIS is in order?
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Slipe up an down the pole.. er mean candle stick..
http://hedgeaccordingly.com/2014/11/women-in-singapore-are-embracing-pol...
There is no mystery... it is the NWO banksters fucking with the gold market to make the USD look better, nothing more. This is how things are done in a crony capitalist society.
''COMEX gold futures, the busiest gold contract in the world..."
Not so. The LBMA trades 180 million oz. of gold per day and traded up to 290 million oz. of gold per day in 2013 on a gross daily trading volume basis.
The LBMA is THE dominant gold trading exchange and sells itself as a 'physical' market - even though its unallocated trading contracts are levered 100:1 paper to gold.
The COMEX is simply a paper mill with very little physical changing hands.
I guess it is a positive thing that Bloomberg would even mention such trading patterns. On the other hand, I wonder to whom they were talking to reach the conclusions they did? To those of us who understand what is going on there is no "surprise" at all, this is pure and simple manipulation by the BIS.CB's and BB's to prevent PM's fron taking off, and in so doing, providing a "Way out" for the muppets who need to stay in Fiat.
The patterns of manipulation have become absolutely shameless, presumably because of totally captured "Regulators". It is just so obvious and they obvioulsy don't care and, in fact, want potential PM investors to understand that there is no way PM's will be allowed to take off again. So invest in USD, Treasuries and Equities.
What kind of normal trader would dump the notional equivalent of 80 Tonnes of Gold at a time of day with almost no liquidity, a strategy which can ONLY have the intent to push down the price of Gold by a "Not-for-profit" "Trader".
Anyone here who wants perspective as to the sheer ridiculousness of the numbers involved - hundreds of millions of "ounces," ostensibly changing hands countless times - I highly recommend attending a real auction involving real things, such as a car auction or a cattle auction, where each and every deal is negotiated between REAL parties for a REAL thing involving paperwork having direct 1:1 correspondence to the thing being sold. You might see a few dozen contracts change hands. That's right: a few DOZEN.
If after that you have any doubt whatsoever as to the corruption involved, well, you can always turn to Las Vegas, once the symbol for decadence in the western world, nowadays a haven for aging users of Viagra and their greedy young imported trophy wives.
Jealous?
It appears the gaps open are larger than the moves shown in their trading session. What is the explanation for those moves?
Another poorly synthesized argument, pandering to the people who bought gold thinking they would be rich by now.
To which argument do you refer? Just to be clear, gold is merely a STORE of wealth. Flipping electrons ad infinitum doesn't create wealth. A high price for real money is a direct measure of honesty in the real economy. That's how we know that this system is a dying con.
the idea that these moves down have any more siginifigance than what are clearly even larger moves down occuring during other regional trading hours. It makes as much sense as the attempt yesterday to link an antitrust article about Dollar General to a different article about grocery store overcapacity in the UK.
What will tomorrow bring, details on the Chewbacca defense?
The pandering is to people who say they are in gold for the long term, but monitor the price all day in real time, and post about every $10 swing as if their is some deeper meaning. If gold repriced to the $5000 it could theorietically be priced at today overnight, society would crumble and it would effectively be worthless compared to tangible/practical assets.
Hey Philipat
I logged in to note the same point. Where is the obvious follow thru question? Why would these algos be dumping in large (now apparently small) blocks of contracts (that often exceed the registered gold on CRIMEX) during periods of low liquidity?
The answer is obvious but why don't they note it.
I have repeatedly hammered Bumberg (news?) reporters and editors whenever they report on any Goldman SUKS pronouncements on gold. They never note the fact that when GS told the world to SELL SELL SELL gold in early 2013, the gold market was bombed by more gold selling than registered CRIMEX inventories AND GS subsequently became one of the largest holders of GLD...which only the banksters can take delivery from, as GLD rebalances in the face of the Sheeple stampede GS and JPM helped create.
Never reported despite repeatedly sending them the ZH link that exposed GS's GLD investments post SELL SELL SELL in March 2013.
Propaganda arm.
I find it hard to believe that some young enterprising trader doesn't bring his lunch to work and figure out a method to make money on these moves during lunchtime? Seems like a calculated short followed up by a long at the end of lunch might work out very well for someone who, you know, trades paper for a living.
I will be very interested to see the brutal crackdown (or utter lack thereof) by the asian authorities on this one.
I keep hearing that PMs are going to find their "true" price in the "honest" markets in the east.
Lets see how these markets really operate.
These are still (CME Comex after hours) Globex (Paper) trades. The true price of physical PM's WILL soon be set in Shanghai, where naked shorting is not allowed and all trades are backed by physical metal. It will take a few years (Or a Comex default) to happen but it IS coming.
To the contrary there is a great mystery.
Lot's of people like to hurl allegations of conspiracy that rely on the existence and utility of the Magic Money Tree, even though they claim the MMT is bullocks and they are advocates of hard money. It doesn't work both ways.
Even the CIA has to balance the books of the ESF if it dips its fingers that cookie jar. The closest thing to a bottomless pit balance sheet exists at the DoD, whose "clients" generally require payment in specie (Au or Pb) and we found out what the limits of that bottomless pit actually were on September 10, 2001. And when you drag in private sector banksters, not only do the books have to balance, but you have to compensate both the shareholders and bonus pool. So the mystery is this:
Step 1) short gold (in large quantities, while the Chinese are at lunch and you get the most bang/price movement for each paper buck)
Step 2) ???
Step 3) ???
Step 4) PROFIT!
Since the people doing this are professionals, they are hedging their short gold positions (step 2) before exiting their trades (step 3). Since JPY has an obscene correlation to gold during the period of paper dumping in question and trades in volume at the hours in question, it is an ideal market to hedge in. If they hedge this way, then their net exposure is (while the trade is open) is not short x billion in gold (notional) it is an infinitesimal fraction of that, if it is even net short. The PROFIT! is also less, but for each billion deployed 100bps of intra-day gain is almost $30K into the hookers and blow petty cash/bonus pool.
Being a bankster isn't that complicated, one employs spread arithmetic to achieve profit. But yet, very few mere mortals seem to understand the classical mechanics dictating and constraining actions in the parallel bankster universe.
Given that you and "Traders" are so smart, please explain why any trader would dump a notional 80 Tonees of naked paper Gold at a time of day when there is no volume with in few minutes?
PROFIT!!!
(It may be God's work, but it sure as fuck ain't charity)
That was a serious answer, but just as importantly, the reason the industry laughs at the tinfoil hatters accusations as presented is because they can't fill in steps 2 & 3, and they deny the need for step 4. Banks are for profit enterprises, accusing them of some great not-for-profit conspiracy is ludicrous. Since it is Globex where the gold side of the trade is happening (and not the Shanghai or Hong Kong exchanges as is suggested elsewhere) - Nanex already has at least half the necessary dataset, all it would take to prove the theory is access and moderate SAP skills or mad SQL skillz and a fair number of CPU cycles.
don't worry asian guys, its all legit. step right up and place your bets...
Hello, Asia?
If you run the exchange, can't you trace the source of those big trades? At least in theory?
It might be nice to know who's doing that.
"can't you trace the source of those big trades?"
Not when you're ordered not to by the biggest buyer in the world, who likes low prices.
Ahh, so.
It's like those samples of mysterious radioactive black dirt they keep finding around Japan. No one has any idea what it is, or why it's radioactive, or where it came from. And they can't analyze it because nobody in Japan knows any science.
But, it's nothing to worry about.
Is this the strange radioactive bacterial black goo you're talking about? Because that stuff is downright freaky.
Hint: think of pitchblende. And then know that natural pitchblende does not contain PuO2.
I have no idea where it might have come from.... no wait, I do have an idea.
One nice things about little (physical) trades is that, done right, that they are hard to trace as well.
All of those 0.25 oz to (say) 5 oz coin purchases, one by one...
Do that every few weeks/months for a few years, it adds up.
Feels even better making those "trades" at low prices!
"someone is utilising these thin trading volumes to get a turbo steroid move"
No shit!
You know the old saying:
"The market goes up on a ski lift and down on the space shuttle"
ROR Jokes on US our Asian brethren Bitchez!
Could be Putin...
Shanghi Exchange tainted,gee.
Paper gold will always be this way. There does not even need to be a gold derivative market as there is always LOTS of gold available as it is hoarded and not consumed.
When the world decides to use gold again as a reserve the paper markets will simply be closed out. All they do is provide a way to short gold. When gold is the reserve this will not be desireable.
If gold is being hoarded then there probably should not be LOTS available.
At the right prices, there is an immense quantity of gold available for sale. There is LOTS of gold available, just have to pay the price.
At the right prices, there is an immense quantity of gold available
The right price being the cost of assembling an army, funding a civil war, taking over another country's central bank vaults and shipping the gold out of the country.
i hate when people say the pm paper markets will be closed out.
Yes slv , gld, uslv and i could go on and on would simply disappear.
but a ticker for a silver miner ? or Barrick? or a streamer like SLW. or
sprott funds , or CEF, etc...if they all go to ZEro , the atms are closed and it is game over for everybody . Yes i will survive in
patagonia until i don't.
I am officially going on a ZH mission to prove my point , that some " cardboard pms" are an option.
Golly, gee wiz, wonder who could be doing that?
even that extraterrestrial alibaba dude thinks things are getting fishy.
put up alibaba on the chart against gold... and watch the fireworks!
Fuck you Bernanke.
I noticed this too, they were also doing it just before EU open aswell a few weeks ago with almost 0 volume. Really weird.
Lunch?? Lunch is for wimps.
they invited jpm into their exchange, you get what comes with them, i couldn't believe it when i read it.
The Shanghai Exchange trades in PHYSICAL GOLD. The margin is 100%. There is no naked shorting that market.
This is happening in the FUTURES Markets in Hong Kong. It is a paper trade.
There are two distinct markets. One is for REAL Metal. The Shanghai and the LBMA are examples of that marketplace however the LBMA is fixed twice per day.
Then there is the Paper Gold Market...futures. The percentage of margin to play in that game is set by CME Group. And it is different for preferred clients. Naked Shorting is allowed. (Of course that is a FRAUD in a sense...selling a product which you do not own.)
But the Chicago Mercantile Exchange was initially set up for Agricultural Products. The agricultural products traded also do not exist as they have not been harvested or fattened for slaughter. CME Group should have not ever been allowed into the Hard Goods business in the first place. where the Goods already exist, BUT THEY WERE and that is the REALITY which we are dealing with.
They took a concept initially created to provide stability in prices for Agricultural Goods and then perverted it in order to commit fraud.
The Futures Contract price is the price for a contract which gives the promise of Delivery at a Future time. The Contracts are 90 day contracts. The price quoted is the price of 1/100th of a contract as the contracts are for 100 ozt.
Jeffery Christian needs to have his head severed from his body by Guillotine. He has damaged so many people and is indirectly responsible for the deaths of many others. He deserves the DEATH PENALTY.
Little China man youre about to find out how the pros will fuck your every trade.
LOL. How do you expect market prices to move ? Against your preferred notions. Trading with awareness of Algos, HFT, etc are all taken into account by any sane trader.
There are also trades that are not bothered with daily/hourly moves for strategic momentum or longer period hedging.
Either some losers who should not be trading or a juvenile spinner regurgitating from the tomes of the academia. Still not getting that fundametally price discovery has gone awry across paper markets uder girded by the fial debt/money. This is exacerbated by rigged markets although you can debate what is ir is not rigged. Also, value judgment has no place in the markets.
Ho Lee Fuk
Sum Ting Wong
Regardless, the "sneak attacks" in the end have not worked, POG has bounced back, leaving the perps with losses.
Going into Crimex first notice there are a heckava lot of December open interest still holding: 164,581 in gold, and 62,200 in silver. They seem in no rush to roll out.
No disrespect Asia but perhaps get with the program. Got nothing to do with you being out to lunch. Called market manipulation on a grand scale.
HSBC shorts 44 tons of gold paper gold for 1 year delivery at lunch time driving the paper price down to say 1150. Other side of the contract is JPM. In one year time, Gold has say risen to 1300. Delivery is settled in paper not physical. JPM is up 200m on the trade. HSBC is down 200m. Fed receives 200m PandL from JPM who are then flat. Fed pays HSBC 200m therefore Fed and HSBC are flat.
Everyone is flat but paper price for Gold was originally smashed back on the day. Of course Fed pays trading commissions to parties to keep the merry-go-round going. Market manipulation at the grandest scale. All very illegal but who the fuck are you to stop it. These guys can do this all day long and who the fuck is going to find out.
Good explanation, thanks
It was made very clear in that 1974 record of converstation with Kissenger that Gold was seen as a major threat to USD hegemony.
They believed this so much that they had a complex grandiose plan to demonetise gold.
And ever since we have seen bizarre stupid acts in keeping gold under control (Brown's bottom, leveraging 100:1, the Fed dumping 400 tons of paper gold in a day).
So if they thought gold was a big risk to the USD back then...how much more so now with 16 trillion debt and global QE games with economies burried in debt....and Japan's kamakazi printing plan....
If this is truly how serious they see gold in relation to fiat and this is really just the CBs in action to defend fiat, especially USD, they it is guaranteed that they will still go to all and any lengths to trash it... until they cant...or becomes more risky to do so...ie physical gold disappearing.
I think they will very much want the Swiss poll to fail.. which I gather will mean rigging the poll if possible, and a massive dump of gold is coming...another 400 ton dump? And another trashing of gold shares??
I can feel it my bones that they want gold sub 1,100 as a first target. Unless now they are so far down the road that physical gold has dissapeared too much and too fast to stick with it....that they give up and set a higher target to defend.
They would have been better defending gold at $1,800 than $1,200... that would have stopped a lot of physical moving to the East so quickly.
As hard as they manipulate it downwards at some point they will manipulate it upwards at maximum velocity. Gold investors are Pavlovs dogs and have been trained to await for the pullback. Like the general markets it will just keep on getting pumped higher and higher and most retail investors will not participate.
If gold gets a run up groups will jump on board as happened the last time gold dumped to 800/900 then all the way to 1900....USA is not the only market......Europe, SE Asia, Asia, S.America etc much more attuned to gold than US sheeple....they have a different and longer history with fiat and governments than Americans. You wont have to tell them twice.
TPTB will let gold have its head when CBs think it is a pointless exercise keeping it under control.
But with Japan, Europe, China heading further to the easing route, and US already at 16 trillion I don't think TPTB want an exodus to gold, or gold to be taken as a gold standard against fiats. They want fiats compared to fiats. And they want the USD as the only thing considered as 'good as gold'.
But if they really wanted gold ...just trash gold mining shares and buy up all the companies.
But I guess there will become a point when total lack of physical overwhelms the manipulation. As it is the moment they release the pressur gold climbs each time...
Noting suspicious about gold's moves. It was projected here and is performing as expected.
http://www.globaldeflationnews.com/gold-elliott-waves-forecast-a-multi-m...
Echoes of Robert Prechter's (repeated) calls in 2008/2009/2010, etc.
There really isn't any more that need be said regarding Elliott wave and gold, nor 'deflation' as it pertains to the current era of managed markets. Not to suggest that EWT analysis wouldn't be a good thing, but it simply has no relevance today. In fact, with an entirely managed system, nothing has any relevance, other than you are on your own.
My stop got hit but the police wouldn't believe me when I told them I'd been a victim of fraud.
I would like to see them push Gold down to $800 and hold it there for a while. With the three biggest Gold Miners up to their Eyeballs in Dept and a cost price of $1200 per oz would not lsat very long. In the mean time every Tom, Dick and Harry would be out there buying up big until there is none left to buy. It that will not kill their shifty game, what would?
Well, China - you an Russia need to get to work to hack and intercept this bitch! This is fucking war, and you should start treating it as such. You've piled in, now cash in. You won't find very many here who would complain.
The Fed and their allies are applying a rhythmic thrumming to the sphincters of the goldbugs. Night time missionary, some call it.
Please supress it all the way to $0, this pussy ass $1200 shit is the work of chumps.
Bring back Blythe, that bitch had some balls.
Earlier comments have disappeared? wah gwan?
Why couldn't it just be the FED slamming paper in order to take cheap phz out. They do have delivery obligations, no? Vault can not be audited, and perhaps they have run out of tungsten too.
It may not be easy, but it IS possible to trace
transactions done in BitCoin...
You mean to tell me, you can't trace who these trades
are being done by in a system where every transaction
belongs to a "registered" trader and is recorded and
forwarded to some gov't agency???
Really???
The last thing the Gov's /CB'sof the world will ever want, is to lose control of the price of PM's. Just like in the past. where they tried to keep the price of gold at $35. All fiat currencies will be forced to their true value of zero if they lose control. This fiat currency is the root to all the theft of the peoples wealth. ie inflation.
So how to stop this manipulation is the trillion$ question!
Will the Swiss vote yes?
Will Germany get their gold?
Will Russia start a gold back currency?
Will China Gold back their currency?
Will the power of the internet help to resolve this?
Will we have to wait until their is no real gold left to purchase?
Will it take a revolution?
This fiat con is on of the biggest con's on the people today.
Would any sane person want to play poker knowing that one of the guy's at the table was using printed money from his press!