Gold Surges Amid Asian Sea Of Red, China Strengthens Yuan By Most In 4 Months

Tyler Durden's picture

Hong Kong's Hang Seng index is now down over 21% from the highs, having fallen over 9% in the last week, and Taiwan's TAIEX is down over 20% from April highs, joining Chinese stocks, both joining Chinese stocks in official bear markets. Japanese markets are down over 6% in the last few days (which Amari simply brushes off, blaming the global selloff stemming from China), a JGB trading volumes slump to a record low. Tensions in Korea are not helping. With all eyes on China's flash PMI (though why we are not sure since PBOC is already full liquidity-tard with CNY350bn this week alone), The PBOC fixed Yuan at 6.3864, up from yesterday's biggest strengthening in 3 months to 6.3915 (the biggest 2 day strengthening since April), and margin debt fell for the 3rd day. Gold is surging in the Asia session, near $1160.

The 3 Bears...

  • *HONG KONG'S HANG SENG INDEX FALLS 1.8% IN PREMARKET

 

China remains ugly...

  • *SHANGHAI MARGIN DEBT DECLINES FOR THIRD DAY (Good News!)
  • *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 0.6% TO 3,580.2
  • *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 1.3% TO 3,714.29
  • *CHINA SHANGHAI COMPOSITE SET TO OPEN DOWN 1.5% TO 3,609.96

 

As The Yuan fix is strengthened notably..biggest 2 days strengthening in over 4 months...

  • *CHINA SETS YUAN REFERENCE RATE AT 6.3864 AGAINST U.S. DOLLAR

 

The question is will China's PPT rescue them from the 200DMA...

 

Japan is rapidly getting uglier...

  • *JAPAN'S TOPIX INDEX EXTENDS LOSS TO 2.3%

 

But don't worry about Japanese stocks...

  • *AMARI: JAPAN STOCKS REFLECT GLOBAL SELLOFF STARTING IN CHINA
  • *ASO: HAVE TO CAREFULLY WATCH CHINA CURRENCY SYSTEM

But perhaps this will wake some Japanese up...

Japanese government bond trading has slumped to a record low and the Bank of Japan’s own analysis shows a market still in stress across a range of indicators.

 

Trading volume sank to 15.6 trillion yen ($126 billion) in July, based on BOJ calculations using figures from the Japan Securities Dealers Association on Thursday. That’s down 73 percent from as high as 57.4 trillion yen in April 2012, a year before BOJ Governor Haruhiko Kuroda began unprecedented debt purchases.

As we noted earlier, Korean tensions are rising...

  • *S.KOREA, U.S. FORCES UPGRADE JOINT SURVEILLANCE WATCHCON:YONHAP
  • *N. KOREA’S KIM JONG UN ORDERS ARMY INTO STATE OF WAR: XINHUA
  • *N. KOREA SEEN MOVING ARTILLERIES CLOSER TO BORDER: YONHAP NEWS

But there is some Green.... in Gold...

*  *  *

Charts: Bloomberg

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dimwitted economist's picture

it's the end of the world as we know it....

El Oregonian's picture

They've killed the workmen but the work must go on.

Pool Shark's picture

 

 

To all the gold shorts out there who are suffering horrendous paper losses:

 

 

 

SUCK IT!!!!!!!!!

HAHAHAHAHAHAHAHAHAHAHAHAAHA!!!!!

 

holgerdanske's picture

One of my dear wife's most treasured features is she never says "I told you so" and I love her for that.

But I must admit, bloody difficult not to do!

However I will also refrain, which does not mean I don't think they get what they deserve, and I hope they will get a lot more.!

They have been torturing me for 4 years with and extended and increasingly improbable driving down of gold's value in spite of everything a 5 year old would be able to identify as fraud and shenanigans!

I will just sit back and quietly enjoy sanity and justice slowly creeping back into the market.

But I really hope some will have hell to pay for manipulation and exploitation.

 

philipat's picture

Until 3AM Eastern time when , again, just by coincidence "Someone" dumps naked paper shorts on the Globex at the most thinly traded time to try to take out the stop stack(s). This is so obvious that "They" obviously WANT you to know they are doing this but, you know what, it doesn't work any longer. Nice try Guys....

mtndds's picture

Nah, PPT will a push the DOW tomorrow up 350+ points tomorrow.  Gold will get slammed as well.  Nothing to see here.  Please move along.

TeamDepends's picture

Maybe, maybe not. September is almost here. Perhaps it is time for shock and awe.

Lets Buy The Dip's picture

love the update, the market is raveling down it seems in GLOBEX> ooops!

There is so much bearishness out there right now, everyone thinking this market will crash to zero. However this guy from OZ ==> http://www.bit.ly/1fMcakI  is saying look to the market psychology, as this might be a nice dip to buy soon, one could make off like a bandit!!!

High-correlation environments, like the markets have seen since the Great Recession and the Federal Reserve's aggressive intervention efforts, present challenges to active managers and those looking to employ diversified portfolios. Correlations among the S&P 500's 10 sectors peaked at 95 percent in 2011, meaning almost perfect movements in the same direction, according to Convergex, a New York-based brokerage.

H H Henry P P P Paulson's picture

I love how that website is charging for "VIP" services.  I guess the website owners are admitting they're part of the dumb money crowd as well, and instead try to make money by enticing subscribers.

The Bell Rang's picture

Do you see what happens Janet,  do you see what happens when you fuck a country in the ass........

nmewn's picture

Full reverse Cap'n Mao!...lmao!

TeamDepends's picture

See! Capitalism bad, make me cry.

Realname's picture

Red is the new green.

palmereldritch's picture

FED is the original Red.  Home of the green close

Zero Point's picture

Time for the Chicoms to change their traffic lights again.

phyregold's picture

Wait wait.

 

 

Didn't the other day, they devalue by 1.9...  only to turn around today and increase bt 4%....

 

 

Can somone explain to me WTF?   It's above my pay grade

cynicalskeptic's picture

There's always the tried and true 'solution' to all world-wide financial crises....

 

WWIII in 3......... 2............

palmereldritch's picture

Check for Tungsten! That stuff is like an infection teams deploying now

stant's picture

The 300 tons of gold found on that German army train will save us all. Soon as the dig it out of that old tunnel in the polish mountains

adr's picture

It was all in tooth form pulled from the mouths of Jews right?

lasvegaspersona's picture

Sooooo is this the early stage of a gold paper  'pump and dump' or the beginning of a real rise in the POG that goes on 'til things break?

It does seem a bit 'different' now.

DirkDiggler11's picture

I agree. For once is does have the feel like the Central Banks have lost control and the world's financial markets are like a runaway train. The bankers dont know how to stop the train, they only know how to throw more coal in the firebox and get the son of a bitch moving faster and faster down the tracks.

"Casey Jones you better watch your speed" .....

SoilMyselfRotten's picture

I agree as well but it's nothing a $20 smackdown can't cure!

SillySalesmanQuestion's picture

Now you can jump fuckers...

DirkDiggler11's picture

Another great day to add to stores of Whiskey, Food, Ammo, and even a few more shiny coins. Looks like the action around the globe is starting to heat up a bit as the music in this game of musical Central banks plays faster and faster ...

Anopheles's picture

With whisky, food and ammo, you can trade for all the shiny coins you want. 

The key for a longer downturn is to be able to provide others things that they need, and are willing to pay for (dearly).   Those things are food, shelter, security and fuel/energy. 

You will find that in a worldwide crash, PMs will be extremely discounted.  PMs are only good in localized crashes, because they're still in demand in other parts of the world.   If there isn't demand in other parts of the world,  they're not much good.   

 

buzzkillb's picture

Looked around at PM's today online and a lot was sold out. A week or so ago some of the items were just on a week or two wait. But now gone. Sure you can buy the gold bars and coins multiple $100's above spot, plenty of that. These aren't Cecil the Lion Beanie Babies, so I want PM as close to spot as possible, to throw into the ocean of course.

Whiskey sounds like a good buy at this point.

ClassicCommodity's picture

The closer it gets to $ zero (0) an ounce, the closer we get to freegold. These upward movements depress me. It's going the wrong way.

lasvegaspersona's picture

Relax, FOA was smart, not a prophet....said so himself.

It can be hard to predict all the forces during an explosion.

https://www.youtube.com/watch?v=oBPpfg_aWcE

Westcott Canon's picture

This will end well. Hey hon, hand me another stack of 100's I need to keep the fire going. It is getting cold again.

SMC's picture

Only physical gold is money.

DirkDiggler11's picture

Chinese Flash PMI printing well below 50 af 47.1 should help ensure a "robust" start to the trading day in Asia and Europe as well.

Honey, bring me another beer, and can u make me a samwich with extra bacon ...

astitchintime's picture

BloodBathandBeyond ....

SO clever Tylers!  I love it :)

astitchintime's picture

Yeah, so seriously it appears the entire global economy is swirling down the commode.

September ought to be fun, or not.

stormsailor's picture

looks like its hanging tough around 2% down.  like to see it down 10% to set up a real black friday

Magnum's picture

Always nice to see gold go up in US$ terms.  It's been going up a lot in other currencies as well.

mijev's picture

Right now, as I'm living outside the US, I'd like to see both gold and the USD rising. But I'll happily take whatever upward movement they "allow" at this point.

JOHNLGALT's picture
JOHNLGALT (not verified) Aug 20, 2015 11:20 PM

I’m doing my best to create a Silver shortage. Are you. Friday is a good day to buy some more PET ROCKS. Are you doing your bit to get rid of this so-called funny money scheme?.JOHNLGALT.

22winmag's picture

I hit the jackpot during Tuesday's Bitcoin crash.

 

I put $200 in a Bitcoin ATM around 2pm EST and got $1,400 worth of Bitcoin!

 

I used it to buy an ounce of gold later that night!

lasvegaspersona's picture

But Mr. Dent, you said gold would go down with deflation...

Debugas's picture

chinese gamblers rushing back into gold ?

WEIRD

Tinky's picture

Great line from Jesse:

"No one wants a pet rock, until you have to provide the one you sold but didn't have."

Panic Mode's picture

I won't call this a surge but I am hoarding pop corns for the shorters show.