Everyone Jumping On The Bandwagon: BofA Says To Stay Long Gold Until $1,375, "$1,550 A Possibility"

Tyler Durden's picture


First it was Goldman confirming that when it comes to penning "investment theses", all Wall Street knows how to do is jump on a momentum bandwagon, when it said overnight that  there’s scope for gold prices to "extend much higher over time." Now it's Bank of America's turn.

Here is the latest chart magic from BofA's technical strategist Paul Ciana:

Staying long gold


Gold prices are breaking above triple resistance forming a technical bottom and channel breakout. This projects gold higher to 1,315 and 1,375. The gap in the distribution on the left shows 1,550 is a possibility, though we are not making that our target at this point.


We remain long gold on a technical basis.



Normally, these recommendations would be enough to send gold plunging; however with gold soaring over $50 on the day, its biggest move since September 2013...

... despite bullish calls by not only Goldman and BofA but even Dennis Gartman, perhaps this time it's different?

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Thu, 02/11/2016 - 12:05 | 7170824 spartan117
spartan117's picture

Where is anepasshole?

Thu, 02/11/2016 - 12:09 | 7170845 Latina Lover
Latina Lover's picture

Fuck you BOA! Didn't you assholes predict sub $1000 gold prices, so that you could cover your naked shorts?

Thu, 02/11/2016 - 12:11 | 7170857 SheepRevolution
SheepRevolution's picture

Monkey lost his hammer? Or is monkey looking for his bigger hammer?

Thu, 02/11/2016 - 12:19 | 7170924 actionjacksonbrownie
actionjacksonbrownie's picture

See those 2 smackdowns at 8:30 and 9:30? It's not like they didn't try. However, once this momentum subsides, the smackdown will be epic.

Thu, 02/11/2016 - 12:24 | 7170973 BaBaBouy
BaBaBouy's picture

Remember The Paper GOLD Markets have almost no PHYS Stocks to Deliver.....

Thu, 02/11/2016 - 12:29 | 7171018 kliguy38
kliguy38's picture

I'm sitting tight until it hits 55,000....then I'll sell half

Thu, 02/11/2016 - 12:35 | 7171059 Sonic the porcupine
Sonic the porcupine's picture

What if a loaf of bread costs $2000?

Thu, 02/11/2016 - 12:38 | 7171091 Silky Johnson
Silky Johnson's picture

Fuck your dollars, they are dying. I don't like bread anyway.

Thu, 02/11/2016 - 13:04 | 7171247 Latina Lover
Latina Lover's picture

Oh, the banksters will try to smack Gold down again, and again.  However, investors are starting to see through their frauduent ponzi schemes, and are no longer buying their BS.   The Chinese, for example, could easily liquidate 100 billion in USSA T bill garbage (less than 4% of their total currency reserves) and buy physical gold.

Thu, 02/11/2016 - 13:16 | 7171344 Mr. Universe
Mr. Universe's picture

It's almost time for WWIII.

Thu, 02/11/2016 - 17:07 | 7172854 aPlayer
aPlayer's picture

Gold has probably more to go if I look at the chart:

Thu, 02/11/2016 - 13:48 | 7171582 Central Bankster
Central Bankster's picture

The Chinese will need every one of those Dollars from liquidated treasuries to try a plug a hole in their acute dollar shortages and to prop up their over leveraged banks.

Thu, 02/11/2016 - 13:05 | 7171260 SumTing Wong
SumTing Wong's picture

We make our own bread...and we have plenty of good wheat stored with more to come in the fall. Grow your own damned groceries.

Thu, 02/11/2016 - 13:07 | 7171277 The9thDoctor
The9thDoctor's picture

Even if gold goes back to $1,550, it is still way down from 2011.

I remember this site had contributors claiming gold would hit $5,000. I knew paytriots that ran up credit cards and bought silver at $45 and gold at $1,900 based on a cartoon bear video they saw here on Zero Hedge. They are still making payments plus interest on overpriced metals to this day!

As soon as another round of QE is announced, stocks will rally and metals will go back down again. The entire system is based around boomers and their 401ks. That unsustainable system takes precedence over everything else.

Gold was good in the late 1990s until its bull run ended in 2011. Now it is a joke.

During a market crash, good luck SELLING your metals, when people won't even have enough money for food. Investing in grocery stores who accept EBT would be a better option for entertainment purposes only.

Thu, 02/11/2016 - 13:11 | 7171307 Alea Iactaest
Alea Iactaest's picture

Canada sells nearly half of all its gold reserves

The government of Canada sold off nearly half its gold reserves in recent weeks, continuing a pattern of moving away from the precious metal as a government asset.

Source: http://globalnews.ca/news/2508940/canada-sells-nearly-half-of-all-its-go...

Thu, 02/11/2016 - 13:19 | 7171382 Yukon Cornholius
Yukon Cornholius's picture

Apparently the GOC thinks German and Japanese bonds are the way to go. Lolz

Thu, 02/11/2016 - 13:36 | 7171494 Socratic Dog
Socratic Dog's picture

Who bought it?  That's the question.

Funny time they picked to sell.

Thu, 02/11/2016 - 14:35 | 7171920 Al Bendova
Al Bendova's picture

NEWS FLASH: Gubmints r Stoopid

Thu, 02/11/2016 - 13:24 | 7171401 Canadian Renegade
Canadian Renegade's picture

This entire analysis is laughable. Gold declined because of manipulation and the idea that Qe would be removed and rates normalised. Now people are realising that isn't going to happen. Rates will stay at zero and more QE on the way.
Also also look at what happened to gold during the crash in 2008. It went down with stocks and commodities. This time it is going up with everything else going down. Something has changed.

Thu, 02/11/2016 - 13:26 | 7171426 Alea Iactaest
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No moar QE until you beg for it. But be careful what you wish for...

Thu, 02/11/2016 - 13:49 | 7171600 A Nanny Moose
A Nanny Moose's picture

Gruel and Unusual Punishment.

Thu, 02/11/2016 - 12:39 | 7171092 Killtruck
Killtruck's picture

Then the people without gold will not be eating more than one loaf of bread...

Thu, 02/11/2016 - 12:57 | 7171213 Dsyno
Dsyno's picture

"I'm sitting tight until it hits 55,000....then I'll sell half"

What are you gonna sell/exchange your gold for? Dollars?

Thu, 02/11/2016 - 12:58 | 7171224 quadraspleen
quadraspleen's picture

What are you gonna sell/exchange your gold for? Dollars?

I'll buy some Yen I reckon

Thu, 02/11/2016 - 13:36 | 7171495 Cloud9.5
Cloud9.5's picture

How about a farm?  Land in Florida was a dollar an acre back in the day when a dollar was silver and fifty dollars was gold.

Thu, 02/11/2016 - 12:25 | 7170976 MagicHandPuppet
MagicHandPuppet's picture

<--- To the moon short term

<--- Will be smashed back down

Thu, 02/11/2016 - 13:09 | 7171138 Squid Viscous
Squid Viscous's picture

now it's the lead headline on Drudge for fuck's sake ...

time to sell and wait for another entry

edit: if you are trading gold or the miners, IMO

Thu, 02/11/2016 - 13:09 | 7171293 The9thDoctor
The9thDoctor's picture

This ^

Thu, 02/11/2016 - 13:10 | 7171300 SumTing Wong
SumTing Wong's picture

There will be margin calls on equities, and some dumb shits will have to sell their GLD holdings. This will take the paper price back down. But then we just BTFD. The manipulation can't go on forever.

Thu, 02/11/2016 - 13:43 | 7171554 rbianco3
rbianco3's picture

Nice to see the fear coming out here at ZH - the gold shorts must be feeling the pain.

Feel bad for them, must be terrifying to have unlimited downside. 

Disclaimer: Exited the casino mid-August '15. Up to 25% powder used on metals w/ plans to accumulate dips for next few years.

Thu, 02/11/2016 - 13:52 | 7171629 xtop23
xtop23's picture

Massive margin hikes coming almost certainly. The question is if they'll actually do anything. I have my doubts.


We'll see.

Thu, 02/11/2016 - 14:13 | 7171798 U4 eee aaa
U4 eee aaa's picture


I get nervous when the crowd shows up. They are notoriously fickle and wrong in the extremes.

You sell to crowds, you don't buy with them

Thu, 02/11/2016 - 13:01 | 7171231 Dsyno
Dsyno's picture

<--- Neither answer is correct, you gold critic.

Thu, 02/11/2016 - 14:31 | 7171899 Muc Metals
Muc Metals's picture

Sure, they will be trying to smack it down. Problem is that they cannot print 'barbaric metal'.
So they will be flooding the market with paper gold. But Chinese are not as stupid as western investors.
They are prefering the 'real thing'. 

Once when Byzanthians were buying chinese silk, they were paying with Byzantine gold coins.
Lots of these coins never went back to Byzanz because Chinese were hoarding them.
Today when Chinese tombs are opened you still are finding these Byzantine coins.

And until today you still could buy something to eat with these coins which were minted in 500 AD... ;)

Thu, 02/11/2016 - 12:27 | 7170995 ilion
ilion's picture

Massive wipe out today of retail and institutional gold traders, securities broker Tickmill noted today that a major hedge fund was stopped out of a large short position in Gold.

Jesus, had I known 5 days ago that gold is about to jump 100 dollars. 

Thu, 02/11/2016 - 12:39 | 7171094 Bay of Pigs
Bay of Pigs's picture

Anyone short of gold in this shitshow of a market deserves a good cornholing.

Where is that investurr poster now?

Thu, 02/11/2016 - 12:54 | 7171200 actionjacksonbrownie
actionjacksonbrownie's picture

Absolutely BoP. Too bad the biggest shorts of all never get a margin call.

Thu, 02/11/2016 - 12:53 | 7171193 TradingIsLifeBrah
TradingIsLifeBrah's picture

What does Gartman think?

Thu, 02/11/2016 - 13:21 | 7171394 Alea Iactaest
Alea Iactaest's picture

FTA: "... despite bullish calls by not only Goldman and BofA but even Dennis Gartman, perhaps this time it's different?"

Thu, 02/11/2016 - 13:50 | 7171411 Alea Iactaest
Alea Iactaest's picture

Glodman? LMAO... Glodman was short before it was long... As in 2 days ago (Feb 9)

Goldman No Believer in Gold Rally as Fed to Hike Three Times

Goldman Sachs Group Inc. is no believer in gold’s rally, predicting losses over the coming year as the Federal Reserve increases U.S. interest rates no fewer than three times. Futures dropped.

“Our economics team forecasts that the Fed will raise rates by 25 basis points three times this calendar year, to 1.3 percent,” analysts including Jeffrey Currie and Max Layton wrote in a report received on Tuesday, forecasting that bullion will trade at $1,000 an ounce by the end of 2016.

Source: http://www.bloomberg.com/news/articles/2016-02-09/goldman-is-no-believer...

Thu, 02/11/2016 - 12:19 | 7170925 BaBaBouy
BaBaBouy's picture

""Everyone Jumping On The Bandwagon: BofA Says ""

Its Not A Fucking "Bandwagon"...

GOLD Is 8000 year old "Safe" Money, Nobody Else's Liability, unlike the Keynesian Paper/Digital Fiats Currencies Run/Controlled By the CB's Et Al...Blah Blah Blah...

Thu, 02/11/2016 - 12:23 | 7170965 Rubicon
Rubicon's picture

Comex delivery anyone?

Thu, 02/11/2016 - 12:11 | 7170865 Killtruck
Killtruck's picture

I plan to stay long gold well after those numbers, BOA. But thanks for the...help.

Thu, 02/11/2016 - 12:12 | 7170875 KnuckleDragger-X
KnuckleDragger-X's picture

Naked shorts, naked emperor......

Thu, 02/11/2016 - 12:22 | 7170919 BaBaBouy
BaBaBouy's picture

I was posting 2200 to 2300 Resistance GOLD the other day...

Thu, 02/11/2016 - 13:40 | 7171522 Socratic Dog
Socratic Dog's picture

Yeah.  The way it's going, $1,550 could be this afternoon.

Thu, 02/11/2016 - 12:40 | 7171097 midtowng
midtowng's picture

Get off my gold bandwagon, BofA. I was here first!

Thu, 02/11/2016 - 13:13 | 7171324 e_goldstein
e_goldstein's picture

Absolutely. To know that these cocksuckers, whose institution is a primary dealer of US treasuries, is long gold speaks volumes to anyone willing to listen.

Thu, 02/11/2016 - 12:13 | 7170882 junction
junction's picture

In 1980, as gold headed towards $800 an ounce, entrepreneurs hired canvassers to go door-to-door in poor neighborhoods to ask older people if they would sell their gold tooth fillings for cash.  The gold would go to a refiner and the gold fillings would get replaced by silver amalgam fillings at a dentist paid for by the gold filling buyer, who made a profit on the transaction as long as gold stayed high.  That was a long time ago.  

Thu, 02/11/2016 - 14:16 | 7171811 U4 eee aaa
U4 eee aaa's picture

Nowadays they'll just knock your teeth out....or should I say teef

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