"It's Probably Something" - Gold Surges Above $1200; USDJPY, Oil, Stocks Plunge

Tyler Durden's picture




 

With US markets failing to hold on to today's "Deutsche Bank" euphoric gains today despite, or rather due to Janet Yellen's Congressional testimony, traders in mainland China remains locked out due to the Lunar New Year holiday, while Japan is mercifully taking a break - mercifully, because otherwise the Nikkei would be crashing. However, one market is back online as Hong Kong traders return to their desks to see carnage around the globe, and most importantly, are unable to hedge arbed exposure between China, Japan and the US.

So, with few options, they are buying the one asset that provides the best cover to central banks losing faith, demonstrated most vividly by the total failure of the BOJ, and as a result just as Yen soars above 113... with USDJPY down a stunning 10 handles from the post-NIRP highs...

 

.. and Gold has taken out the numerous $1,200 stops...

 

and is currently surging to levels seen at the end of QE3...

 

What is causing this mad rush into gold is unclear, but... it's probably something.

Meanwhile, as gold is soaring, its BOJ pair trade equivalent (as described in An Inside Look At The Shocking Role Of Gold In The "New Normal") the USDJPY, just tumbled below 113 for the first time since 2014, and with no support levels until 110, this may just be the final straw not only for Kuroda but for the entire Abenomics house of hollow cards.

In any case, don't expect the gold surge to last too long: our good friend, Benoit Gilson, manning the Bank of International Settlements' gold and FX desk, will be on alert very shortly.

Away from currencies, WTI is also collapsing, to a $26 handle...

 

Asian equity markets are crashing...

  • *HANG SENG CHINA ENTERPRISES FUTURES TUMBLE 6.3% AT OPEN
  • *HONG KONG'S HANG SENG INDEX FUTURES SINK 4.9% AT OPEN

 

With energy-related stocks crashing...

  • *CNOOC SHARES FALL 7.5% TO HK$7.28 IN HONG KONG
  • *SINOPEC SHARES FALL 8.7% TO HK$4.00 IN HONG KONG
  • *PETROCHINA SHARES FALL 7% TO HK$4.38 IN HONG KONG
  • *CHINA OILFIELD SHARES FALL 4.1% TO HK$5.10 IN HONG KONG

And banks catching down...

  • ICBC falls as much as 6.3% in Hong Kong to lowest intraday level since Oct. 2011.
  • China Construction Bank drops as much as 5.4% to lowest intraday level since April 2009
  • Agricultural Bank of China sheds as much as 5.9%, lowest intraday level since Oct. 2011
  • Bank of China drops as much as 5.2%

And US equity futures are tumbling (Dow -125)...

 

Someone in Hong Kong is having a very bad day.

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Wed, 02/10/2016 - 20:53 | 7168288 HedgeAccordingly
HedgeAccordingly's picture

Oh man. Dollar weak = gold on Fleek

Wed, 02/10/2016 - 20:55 | 7168294 Bastiat
Bastiat's picture

Nothing in my pocket--I'm just glad to see ya!

Wed, 02/10/2016 - 20:56 | 7168306 HedgeAccordingly
Wed, 02/10/2016 - 21:01 | 7168333 Pladizow
Pladizow's picture

Wanna know how this ends - see gold chart for Q1 2015.

Wed, 02/10/2016 - 21:05 | 7168348 tmosley
tmosley's picture

Chinese rubes buying paper gold backed at 0.2%. Genius. Pure genius.

Paper to zero, bitches.

Wed, 02/10/2016 - 21:26 | 7168415 Haole
Haole's picture

Oooh, my math sucks...  ;)

Wed, 02/10/2016 - 21:32 | 7168458 HardlyZero
HardlyZero's picture

Mar'16 WTI 26 handle.

Wed, 02/10/2016 - 22:07 | 7168503 Nutsack
Nutsack's picture

I loaded up with some more miners yesterday, and just bought 50 more 10 oz bars today. Tomorrow I'm going to all three of my banks and announcing that I am buying a used boat, $5750 it will be....the seller wants it all in 50s. I'll announce that it's a great time to buy things and I'll probably be back soon for cash to buy that camper, and maybe that used vette I have been looking at. I also bought a Thureon Defense 45 ACP Carbine which is pretty cool. I like having a rifle and pistol of matching caliber. I doubt I'll be shooting anything at much over 100 yds, and the ammo is so much cheaper than 5.56...32 round mags are neat too.

Wed, 02/10/2016 - 22:22 | 7168608 Dragon HAwk
Dragon HAwk's picture

the Highpoint 9mm Carbine does the same thing for me,  most fun gun i own, and 9mm ammo is dirt cheep, and the sucker is accurate..  I reload so imagine shooting your assault gun for pennies a round..

Wed, 02/10/2016 - 22:29 | 7168634 Nutsack
Nutsack's picture

lol,

 

I am going to look at a Hi-Point tomorrow as a training gun for my son. Nothing wrong with a $350 Utilitarian Carbine that sprays 9s...They have a lifetime warranty right? I do have a pair of matching Sigs in 9mm too.

Thu, 02/11/2016 - 07:06 | 7169885 RadioFlyer
RadioFlyer's picture

Its a solid no nonsesnse carbine, but you are limited to 10 rounds. The aftermarket 30 rounders jam like Bill Clinton at Jeffrey Epstein's orgy island.

Thu, 02/11/2016 - 07:26 | 7169908 Isy
Isy's picture

A good friend of mine just told me about this incredible

developer, a TOP secret binary formula and $236,708.43 

per month all in the same sentence...

https://www.youtube.com/watch?v=0ml9PdAtYhM

Thu, 02/11/2016 - 02:48 | 7169603 Greshams Law
Greshams Law's picture

I got a Kel-Tec Sub 2000 in .40 S&W to go along with my Glock for the same reason. Uses the same caliber and Glock magazines. Got some extended mags (32 rounds) which are a bit long for the Glock, but will work. The Kel-Tec folds and fits into a backpack for easy transport. For anything over 100 yds, I would use one of my ARs. If I was mobile, I wouldn't care about anything more than 100 yds anyway. 

Wed, 02/10/2016 - 21:30 | 7168452 BlackMagician
BlackMagician's picture

While I agree...there are some differences...like no more ammo for the CB's and negative interest rates...and an election year where Trump could win...so this time may be different?

Wed, 02/10/2016 - 21:50 | 7168557 RadioFlyer
RadioFlyer's picture

The election will be postponed.

Wed, 02/10/2016 - 21:41 | 7168514 stocktivity
stocktivity's picture

Hang Seng just opened down 800 points after being off 2 days. China will be off for a week when they open next Monday. This is starting to get interesting.

Wed, 02/10/2016 - 21:11 | 7168364 earleflorida
earleflorida's picture

http://www.marketwatch.com/investing/index/DXY

95.61

ref: 1 year chart

running~ inverse to gold 1:1

Wed, 02/10/2016 - 22:11 | 7168591 lasvegaspersona
lasvegaspersona's picture

Gold 1208.30  Oil 26.92.......... gold oil ratio...priceless (and hugely abnormal at 44.88...yes indeed...it must be something...cuz it sure ain't the old normal...

Wed, 02/10/2016 - 23:20 | 7168922 Not My Real Name
Not My Real Name's picture

It's not just gold ... a 1964 silver quarter today will buy 2.7 gallons of gasoline based upon the national average price ($1.80)-- as opposed to the typical 1. 

Wed, 02/10/2016 - 20:54 | 7168293 JoeySandwiches
JoeySandwiches's picture

This has gotta be the week we break through those August lows.

Fuck it, let's do it tomorrow.

Wed, 02/10/2016 - 22:32 | 7168680 Nutsack
Nutsack's picture

QE4 you say? When we break the Aug lows?

Wed, 02/10/2016 - 20:54 | 7168295 OpenThePodBayDoorHAL
OpenThePodBayDoorHAL's picture

one more big slamdown for a nice double bottom, then I think it's time (to add, that is)

 

Wed, 02/10/2016 - 20:59 | 7168317 knukles
knukles's picture

Or nice cup and handle a la Jesse

Wed, 02/10/2016 - 21:10 | 7168360 herkomilchen
herkomilchen's picture

I'm thinking/hoping the same.  Current rise is behaving like a normal gold market should.  But something feels amiss/premature about it.  A double bottoming would be the ball drop event, a truck-back-up opportunity for sure.

Wed, 02/10/2016 - 21:15 | 7168380 Lady Jessica
Lady Jessica's picture

Bear trap.  Ghordo told me so.

Thu, 02/11/2016 - 01:43 | 7169462 Squid-puppets a...
Squid-puppets a-go-go's picture

paper price can yoyo, its all completely worthless to analyse it until the comex draws its last breath and shanghai takes over the global baton for setting the price of (phys only, thank you) gold

Wed, 02/10/2016 - 20:55 | 7168304 E.F. Mutton
E.F. Mutton's picture

There is a noticeably direct correlation between this chart and the angular rise of my genitalia. 

Wed, 02/10/2016 - 21:53 | 7168521 The Dogs of Moar
The Dogs of Moar's picture

n!

Wed, 02/10/2016 - 21:47 | 7168526 The Dogs of Moar
The Dogs of Moar's picture

Does anyone remember the film "The Corsican Brothers?"    Based on "Les Freres corses" by Alexander Dumas, pere? 

Conjoined twins seperated at birth they felt each others pains and other things.

Aparently here at ZH we have "The Comment Brothers", who in this instance both got woodies and and commented about them at the same time.

The above comment by E.F.Mutton @19.55

and Bestiat @19.55

Bastiat

Nothing in my pocket--I'm just glad to see ya!

A phantom boner, but a boner nontheless.  I'm sure they're not just The Boner Brothers, and will be looking for similar comments about other topics at the same moment

Vote uVote down!
Wed, 02/10/2016 - 20:56 | 7168305 medium giraffe
medium giraffe's picture

USD still going...

Wed, 02/10/2016 - 21:00 | 7168322 22winmag
22winmag's picture

If nobody objects, I'm going to pat myself on the back for buying all the gold I could afford when it was under $1,100.

Wed, 02/10/2016 - 21:06 | 7168350 Pladizow
Pladizow's picture

Count chickens much?

Wed, 02/10/2016 - 21:34 | 7168470 E.F. Mutton
E.F. Mutton's picture

If they're not Paper Chickens, yes.

Wed, 02/10/2016 - 21:36 | 7168486 seek
seek's picture

I did the same for all the AU I got at $270. And then kept repeating "fuck me!" over the past two years for not selling half of it at $1800 (and subsequently rebuying in now.)

Wed, 02/10/2016 - 21:00 | 7168325 FreeShitter
FreeShitter's picture

Did the same in 2007.....hang on bitches we all gonna be rich!

Wed, 02/10/2016 - 21:36 | 7168487 cpnscarlet
cpnscarlet's picture

Or maybe just less screwed than our neighbors.

Wed, 02/10/2016 - 21:04 | 7168331 earleflorida
earleflorida's picture

http://www.marketwatch.com/investing/future/GCJ6

un`real???

WOW!!! hit 1215 minutes ago

Ref: 1 yr. chart

Ps. NEM soaring afterhours

Wed, 02/10/2016 - 21:01 | 7168332 new game
new game's picture

is it tyme to jump on the gold wagon? i mean really, talk about a beaten to death and back story.

yea, yea, i lost it all at a bankers convention, we got a little drunk while boating, and the bankers couldn't swim. top that story bitchez...

Wed, 02/10/2016 - 21:08 | 7168354 Catullus
Catullus's picture

Could be worse. This could be oil. Or natural gas. Or platinum.

Wed, 02/10/2016 - 21:14 | 7168378 new game
new game's picture

futures taking another seal beating. from an arial view the snow has a wide circular pink pattern...

Wed, 02/10/2016 - 21:07 | 7168340 Haole
Haole's picture

...what, no talk of "manipulation" or "paper gold price"?

Easy, eeeaaasy...  Just kidding...

Wed, 02/10/2016 - 21:04 | 7168341 logicalman
logicalman's picture

Things are definitely getting interesting.

 

Wed, 02/10/2016 - 21:05 | 7168345 FranSix
FranSix's picture

More like the forward skew in gold prices once they topped $1000 again. You'll get a rise, then a temporary shallow correction and a persistent rally after.

Wed, 02/10/2016 - 21:09 | 7168357 buzzsaw99
buzzsaw99's picture

Chinpokomon Executive: You are American.
South Park Toy Store Owner: Yes.
Chinpokomon Executive: Ohhh, you must have very big penis!
South Park Toy Store Owner: Excuse me, I was just asking you what your up to with these toys.
Chinpokomon Executive: Nothing, we are very simple people with very small penis. Mr. Hosik's penis is especially small!
Mr. Hosik: So small.
Chinpokomon Executive: We cannot achieve so much with such small penis, but you American wow, penis so big, so big penis!
South Park Toy Store Owner: Well aah I guess it is pretty good size.

Wed, 02/10/2016 - 21:11 | 7168361 Omega_Man
Omega_Man's picture

so are they buying yen to cover the carry trades.... the end must be near

Wed, 02/10/2016 - 21:14 | 7168377 knukles
knukles's picture

Existential or calendar?

Wed, 02/10/2016 - 21:34 | 7168468 scintillator9
scintillator9's picture

Most Assuredly Yes.

Wed, 02/10/2016 - 21:35 | 7168471 scintillator9
scintillator9's picture

<dp>

Wed, 02/10/2016 - 21:11 | 7168365 vincent
vincent's picture

Sell in May Bitchez!!

Summer low coming, and the lower the better.

Wed, 02/10/2016 - 21:13 | 7168369 buzzsaw99
buzzsaw99's picture

Sell LAST MAY bitchez.

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