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Gold Surges Above $1200 On Heavy Volume As USDJPY, Treasury Yields Tumble

Tyler Durden's picture




 

USDJPY has tumbled overnight back below 119.50, dragging stocks (equity futures now at session lows) and Treasury yields with it. But it appears the Gold/Yen trade that is reacting most significantly as a huge volume flushes through futures markets spiking Gold back above $1200...

Yen moved first then Gold reacted to keep the least famous pairs trade alive...

 

As USDJPY drags stocks lower...

 

and stocks catch down to bonds' uneasiness...

 

Chart: Bloomberg

 

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Tue, 12/30/2014 - 09:40 | 5604683 BoNeSxxx
BoNeSxxx's picture

Only $10 separates the precious from platinum. Last time those streams crossed it spelled a hell of a run for gold...

Tue, 12/30/2014 - 09:57 | 5604720 Arius
Arius's picture

knee jerk reaction from the Sony North Korea latest disclosure ... information from an insider source

 

yen is heavily affected from the korean's penninsula geopolitics ... something forgoten (ignored) on yesterday's article ... but here is mr. market with his reaction

Tue, 12/30/2014 - 09:56 | 5604729 Bill of Rights
Bill of Rights's picture

LMAO! so now hacking Sony Pictures is a Gold mover?

 

My how low we've swung.

Tue, 12/30/2014 - 10:06 | 5604766 Took Red Pill
Took Red Pill's picture

Ted Butler's take on the silver market & JP Morgan's involvement;

http://www.silverseek.com/commentary/perfect-crime-13944

 

Tue, 12/30/2014 - 11:06 | 5604959 Conax
Conax's picture

Ted thinks the monkeys at JPM are planning to profit off the silver they have accumulated by allowing the price to rise.

I think they will feed it back into the market to keep the prices low as long as possible. The SLV phyzz (if any) is at risk because of the weak hands of its investors, the JPM phyzz will provide the necessary ammo for the game to continue. The fed banks stand to lose trillions on paper derivatives that no amount of profit on a stack of phyzz could ever cover. As the gubmint's bankers, they must also support the status quo.  He thinks they are merely investors with privileges, when they are actually gate keepers of the current paper paradigm.  If they're holding phyzz, it's to fuck us.

Tue, 12/30/2014 - 11:44 | 5605101 Save_America1st
Save_America1st's picture

paper prices only rising today because the Cartel/Evil Empire are allowing them to rise for whatever reason.  Who cares...BTFD or buy when it's good for you to accumulate more.  Put your phyzz away and forget about paper prices as price in fiat does not matter.  Only ounces matter.  Watching the day to day ups and down of the paper is just a game with very low entertainment value anymore.  I do it because it interests me and I will buy the fucking dips if I feel like it.  Other than that it makes no difference to me if silver is 15 or 50 anymore.  The whole point is not for investment, folks...it's insurance against the death of fiat that can be used to trade for other valuable assets when/if needed.  There should be no amount of fiat in your head that you would trade your phyzz for, because if you do give up your phyzz for fiat then you have been suckered again by the money masters and their worthless paper. 

Tue, 12/30/2014 - 22:55 | 5607835 Conax
Conax's picture

I re-read that comment and want to add that I admire and respect Mr. Butler. Ted and the late Bob Graham (and a few other wizened old men of the markets) made me rethink the way the financial world works some years ago.  He is the real deal, a man of good character.

I only disagree with him regarding the motives of these bankers and I appreciate the education he provided for nothin'.  Much like ZH.  I am grateful they exist and keep us informed every day.

Tue, 12/30/2014 - 09:41 | 5604684 wallstreetapost...
wallstreetaposteriori's picture

Every time I see this kind of post, everything reverses and makes lower lows.....  Just ignore the move and maybe.. just maybe US10 yields will go to 1% and gold will go to 2000.

Tue, 12/30/2014 - 09:41 | 5604691 quasimodo
quasimodo's picture

How long did you say you can hold your breath again?

 

Tue, 12/30/2014 - 09:57 | 5604730 new game
new game's picture

just buy dat shit, buy baby buy cause da world is coming to an end...

Tue, 12/30/2014 - 09:59 | 5604737 Arius
Arius's picture

unitl ... "I can't breath" ...

Tue, 12/30/2014 - 10:51 | 5604920 Lewshine
Lewshine's picture

Anyone who trades ANYTHING in this grossly manipulated pile of shit market, and that includes precious metals - Deserves poverty. Don't buy on these fabricated moves. Nothing is real anymore. You'll wake up one morning, after the fed sets its targets, and have nothing but ashes left of your investment. Oh look, oil is green now!! What a crock of shit!!

Tue, 12/30/2014 - 10:52 | 5604922 Lewshine
Lewshine's picture

Anyone who trades ANYTHING in this grossly manipulated pile of shit market, and that includes precious metals - Deserves poverty. Don't buy on these fabricated moves. Nothing is real anymore. You'll wake up one morning, after the fed sets its targets, and have nothing but ashes left of your investment. Oh look, oil is green now!! What a crock of shit!!

Tue, 12/30/2014 - 16:49 | 5606401 noben
noben's picture

For a moment I thought it was a typo and it said $1800, rather than $1200, when I read the first part of the headline: "Gold surges to...)

Funny what constitutes a gold Surge these days.

Tue, 12/30/2014 - 09:42 | 5604690 Spungo
Spungo's picture

Now that's what I call efficient markets. The kind of insane swings that would normally take several hours can now be done in less than a second.

Tue, 12/30/2014 - 09:48 | 5604705 Ghordius
Ghordius's picture

the side effect is that so they are less liquid. which translate in more volatility, which translate in more space/demand for derivatives, which all translates in more profits

Tue, 12/30/2014 - 09:54 | 5604716 ParkAveFlasher
ParkAveFlasher's picture

Here I was thinking that one pinstriped-suit-wearing guy got on the phone and called one of the other pinstriped-suit-wearing guys in some nicely-paneled cozy London office, but you say illiquidity...

Tue, 12/30/2014 - 09:43 | 5604692 WTFUD
WTFUD's picture

Expectations are so low that the leap above $1200 can be classified as a SURGE.

Tue, 12/30/2014 - 10:41 | 5604876 Tall Tom
Tall Tom's picture

$1200 seems to be a line of resistance.

 

YoY, right now, it is up $1.50. Woo Hoo... Now that is nearly as much interest which I'd receive if I had Cash in a Bank...with one hell of a lot more risk concerning cash in the bank. They like to STEAL..

 

Actually I like that stability. It may lose a small amount. Or it may make a minor gain.

 

But I am not in it as a speculation, to make a Fiat gain.

 

It can be worse if you value it in Fiat...which I do not.

 

So I really can not care less.

Tue, 12/30/2014 - 09:45 | 5604696 WTFUD
WTFUD's picture

My hard dick was inside her for all of 8 minutes surpassing my previous best of 6 minutes. A whopping 25% surge in performance related activity.

Tue, 12/30/2014 - 09:48 | 5604703 TeamDepends
TeamDepends's picture

But was it in for all 2.5 inches?

Tue, 12/30/2014 - 09:55 | 5604721 ParkAveFlasher
ParkAveFlasher's picture

6 minutes?  Why?

Tue, 12/30/2014 - 12:14 | 5605201 roadhazard
roadhazard's picture

"To hear the lamentations of the women." ~Conan

Tue, 12/30/2014 - 10:19 | 5604815 Thought criminal
Thought criminal's picture

That should deffo be added to the GDP which would surely send stawks to the new highs...

Tue, 12/30/2014 - 09:47 | 5604698 jubber
jubber's picture

wasn't this spike on the Russian headline that the US would not go unpunished? someone obviously  thought that meant an imminent nuclear strike !already back below $1200

Tue, 12/30/2014 - 09:47 | 5604701 youngman
youngman's picture

I would say there are a few safe keepers that need some actual because their customers want to take it with them....and they lent it out years ago...if I was a large holder of gold or silver and it was stored in some place..I would do a suprise inspection to see if its still there...and suprise is the key word here..so the money changers cant just change the name tag on a stack....

Tue, 12/30/2014 - 10:00 | 5604722 WTFUD
WTFUD's picture

Youngman i handed mine over to my financial adviser who told me that if i stick it under his compost heap it will grow rapidly. Is this true? I know i can't read or write but i can drive a tractor.

Tue, 12/30/2014 - 09:50 | 5604702 Spungo
Spungo's picture

Jumping over 1% at the snap of fingers counts as a surge.

Tue, 12/30/2014 - 09:53 | 5604715 alexmark2013
alexmark2013's picture
The Economic ENDGAME Has Arrived--ZIRP and QE to infinity is inevitable, systemic failure ahead| Jim Willie (Encore Presentation) http://investmentwatchblog.com/the-economic-endgame-has-arrived-zirp-and-qe-to-infinity-is-inevitable-systemic-failure-ahead-jim-willie-encore-presentation/
Tue, 12/30/2014 - 11:41 | 5605020 Creepy A. Cracker
Creepy A. Cracker's picture

Please post the date when the systemic failure will occur, plus or minus a week or two.  Or is it in the next 200 years plus or minus 400 years?

It's obvious to pretty much all that failure will happen.  When it will happen is the question.

Tue, 12/30/2014 - 09:53 | 5604717 Fiat agnostic
Fiat agnostic's picture

Bankers trying to hold back Yen collapse at same time as gold hard to source below $1150(and rising) makes USDJPY at 120 the limit for the moment, but how long can they hold it depends on the amount of gold available - by all accounts not much - so something has to give soon. My guess is it won't be gold.

Tue, 12/30/2014 - 09:54 | 5604718 Fiat agnostic
Fiat agnostic's picture

Bankers trying to hold back Yen collapse at same time as gold hard to source below $1150(and rising) makes USDJPY at 120 the limit for the moment, but how long can they hold it depends on the amount of gold available - by all accounts not much - so something has to give soon. My guess is it won't be gold.

Tue, 12/30/2014 - 10:01 | 5604746 T-NUTZ
T-NUTZ's picture

in the long game, rock always beats paper

Tue, 12/30/2014 - 10:01 | 5604750 new game
new game's picture

could be a true deduction posted here now; so buy dat shit now!!!

Tue, 12/30/2014 - 10:00 | 5604741 papaswamp
papaswamp's picture

Totally normal, unrigged markets. The banksters sure do have alot of balls in the air for their juggling act.... Its going to be epic if they drop one...

Tue, 12/30/2014 - 10:00 | 5604742 T-NUTZ
T-NUTZ's picture

the fact that AU and AG have held their own and even rallied in the face of this USD surge is uber bullish for PM's.  Just wait until the USD flames out

Tue, 12/30/2014 - 10:01 | 5604751 blaireauhedge
blaireauhedge's picture

Other topic: members of Syriza met with Goldman Sachs and other bankers in the City earlier this month. It went completely unnoticed.

http://www.wsws.org/en/articles/2014/12/15/balt-d15.html

This basically supports what a few of us were saying yesterday, that is that absolutely nothing will change if Syriza gets elected in January.

Tue, 12/30/2014 - 10:03 | 5604755 GFORCE
GFORCE's picture

Year-end close above $1200 would be good for gold, although the US dollar is likely to rally further on safe haven demand. It WILL be the last currency of the majors standing. Before the full gold rally, we will need bubble top in stocks and last gasps of QE.

www.investfts.blogspot.co.uk

Tue, 12/30/2014 - 13:17 | 5605414 Consuelo
Consuelo's picture

It 'WILL' as long as the Chinese exact a benefit from the dynamic that outweighs a measure of risk or discomfort that they are willing to bear.

 

 

Tue, 12/30/2014 - 10:08 | 5604769 unununium
unununium's picture

Has a new idea entered the consciousness of those who decide where to squirt the Fire Hose of Unlimited Yen?

Tue, 12/30/2014 - 10:18 | 5604809 disabledvet
disabledvet's picture

Massive yen carry trade.  Just keep borrowing at less than one percent...convert to dollars and lend out at 12 or 18%.

In dollars.

Tue, 12/30/2014 - 10:27 | 5604845 discopimp
discopimp's picture

What?  Did someone at the Fed sleep in?

Tue, 12/30/2014 - 10:41 | 5604878 CitizenPete
CitizenPete's picture

It's a long way to the top if you want to Rock and Roll

Tue, 12/30/2014 - 10:42 | 5604884 youngman
youngman's picture

These kinds of moves will become normal soon....sellers are few and far between....and when people want..or need to buy...there will not be any sellers....you hold gold for a reason....delivery is the key word for this year...you are going to see it in headlines over and over again...soon to be followed by failed delivery....

Tue, 12/30/2014 - 11:19 | 5605008 lakecity55
lakecity55's picture

Right on.

Seems to me when there is volatility, fewer hands are willing to sell.

And if you are a cheap bastard and are waiting for the "price" to crash, it may well "crash" but at that point there will be no PMs on the market.

The only caveat I see is if any is available, the Premiums will be way up.

Tue, 12/30/2014 - 10:43 | 5604888 orangegeek
orangegeek's picture

may see more gold bounce before completing shorter term down move

 

http://bullandbearmash.com/chart/spot-gold-daily-reverses-wave-target-1130/

 

once complete, gold may return to near 1250 - USD bias remains key to this

Tue, 12/30/2014 - 11:08 | 5604967 IridiumRebel
IridiumRebel's picture

yeah yeah yeah....It'll get assfucked tomorrow so every paid suit fuckface on ShitNBC can cum all over the screen about its worthlessness and end the year in the red. 

Off the lows off the lows off the lows BaBwawk!

Tue, 12/30/2014 - 11:12 | 5604981 lakecity55
lakecity55's picture

Good grief, it's surging again!

Tue, 12/30/2014 - 11:17 | 5605004 NOTfromSanFrancisco
NOTfromSanFrancisco's picture

 

 

"...huge volume of paper contracts flushes through futures markets spiking Gold back above $1200......

There... Mo' better...

Kitco charts as of 0710 hrs today Pacific time... "Pop Goes The Weasle!"...

Tue, 12/30/2014 - 12:18 | 5605215 roadhazard
roadhazard's picture

My silver is a barter item. Worth what I can get on the day I offer it. If it comes to that I am probably bartering for ammo.

Tue, 12/30/2014 - 14:21 | 5605626 dizzzave
dizzzave's picture

If things collapse to the point where you are trying to trade silver for ammo, why wouldn't I just use my ammo and take your silver?

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