Gold Surges Most Since Brexit After 'Dovish' Fed Hike

Tyler Durden's picture

With the focus overnight on the Rutte 'win' despite the surge in populist angst, and headlines from The Fed, PBOC, BoJ, and BoE sending global stocks to record highs, one might be forgiven for not noticing that Gold is surging (most since Brexit) following Janet's decision to raise rates for the 3rd time in 11 years - far outperforming other assets classes.

The Dollar continued to get pounded overnight as China unexpectedly tightened policy...


Gold the big winner (thogh WTI is rallying also on the heels of the tumbling dollar)


This is gold's biggest day since Brexit...


Gold is above its 50- and 100-day moving averages and $1225, and Silver is above $17...


Helped by the dollar and the news of the split vote (the first in 8 months) at the BoE, cable is surging too...


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BandGap's picture

Take your dramamine, like a roller coaster.

29.5 hours's picture

The Fed hikes, putting the "opportunity cost" of holding gold higher. And gold is bought...makes sense?

American Psycho's picture

2BB in notional paper dumped  in 3, 2, 1...

Elco the Constitutionalist's picture
Elco the Constitutionalist (not verified) 29.5 hours Mar 16, 2017 1:01 PM

Are you trying to assert that markets are free? You can not accurately judge opportunity costs in a rigged fiat market.

That is kind of the whole point of all of the criticisms isn't it? There is no price discovery anywhere.

Clockwork Orange's picture

By design, have to keep everyone away from the volatile, bad barbarous relic, lest the moneychanging be threatened.

CPL's picture

Bet you a beer that as soon as it comes out of vaults, boating accidents and from under floorboard they will appear out of nowhere as if by magic to help reintroduce the subject of fractional reserve banking.  Fuckers can smell metal from a galaxy away with those huge honkers.

Fisherman Blue's picture

Wait for the monkey hammer

P Rankmug's picture

Why did gold rally?  The answer is simple.  Fed rate hikes with excess reserves do no tighten.

indygo55's picture

Beat down in 3,,,,, 2,,,,, 1,,,,,

EhKnowKneeMass's picture

So, is it the two millionth time gold did that? It must be hammer time, right?

You can't touch this...

Arrest Hillary's picture

Why did they keep gold at $1200 .... time to synchronize bots ?

BandGap's picture

Five days. Debt ceiling and this are not being discussed.

" the Iranian government announced it would stop using the U.S. dollar “as its currency of choice in its financial and foreign exchange reports,” the local Financial Tribune reported.

Iran governor Valiollah Seif’s central bank announced the decision in a television interview on January 29. The change will take effect on March 21, and it will impact all official financial and foreign exchange reports."

Arrest Hillary's picture

How do you want your gold, sir .... on the "lay away" plan .... or "buy and bury" .... or "cash and carry" .... or "finance and ferry" (boating incident) ?

NugginFuts's picture

Personally, I keep mine next to my high speed lead supply. 

order66's picture

What the fuck is a "dovish" rate hike?

NoWayJose's picture

Jeopardy Answer: what is a chance to buy cheaper 'puts' on gold before hammering it down?

Dien Bien Poo's picture

one that isnt followed by a series of others

youngman's picture

after they tanked it for two big deal....but with all the crap going on in the world...there should be more safe haven buying..IMHO

BandGap's picture

Iran announces it will no longer use the US dollar on March 21, for any business transactions.

What if they use a gold backed currency? For years they accepted gold from India for oil, during the sanction years. Russia and China have made no secret of buying gold. Could a Russian-Chinese-Iranian gold backed currency be in the making?

Iran is flexing it's missiles for a reason. They don't want to end up like Qadaffi.

Brexit by the end of the month, too. Crazy times.

Due North's picture

" I know! Ain't it cool!"

Teja's picture

Could a Russian-Chinese-Iranian gold backed currency be in the making?

Would be nice, but "gold backed" would mean that humble people would be able to exchange their Yuan, Ruble and Rial for Gold without restrictions. Which depletion rate would you expect? 10% of the shared gold reserves per annum? per month? per day?

Just look at what happened with Bitcoin in China. Why should it be different with Au-coins?

HRClinton's picture

No it doesn't. It means that central banks can swap gold for currency, per pre-agreed terms and conditions. 

Such Terms & Conditions contain the "Soros Clause", to prevent financial institutions or adversarial governments from using Financial WMDs against them. 

As long as a country keeps the Gold-to-Currency and Gold-to-Debt in well defined limits, their money will be treated "As good as gold". The way the USD was, before Aug. 15, 1971.

You will still be able to buy gold, exactly like you can now: with Dealer margins for every buy / sell transaction. 

America's political and money masters, i.e. Thump's true bosses, won't allow Honest Money. That would end their global ambitions of Dominion over all men, using one coin to rule all. The CIA, NSA and DOD are merely the enforcement arm. They are the "Sheriff of Nottingham" to the Money King.

Unless and until that changes, Thump is just a Marionette, dancing to a different tune, to cater to a different crowd. This is the crowd that still has working jobs, to keep the country moving. If they can't tax you, they'll just attack and loot other countries and their banks.

Thump is just a motivational speaker, to deliver their version of "Hope & Change". Should he fail, the decline will be precipitous and War will be the only option left to the Money Masters. 

But what do I know, right? Everyone here purports to know it all, in spite of either not being employed or not being rich. Only a handful here seem to know what is really going on at the top level. Congrats, you've achieved true enlightenment: you are now the all-knowing but impotent Monks. Woohoo!

Confundido's picture

$1,230 is nothing. ZH, get your shit together: THEY WON, WE GOLDBUGS LOST. And if we ever win, they will confiscate. So, there is no win.

BandGap's picture

I believe three states (Utah, Arizona and Idaho) have passed, or are in the process of passing, laws that specifically call out precious metals as currency.I am sure others will follow.

This circumvents confiscation, IMHO.

Due North's picture

Take a moment and just breathe. No one has won or lost until one party is holding the other party's scalp. If you still have possession of phyzz then you are a long way from having lost. If you have lost your scalp dicking around Comex territory, oh well I guess. Keep in mind that relativity dabbles in Karma as well and you have to look to the horizon.

TheLastTrump's picture

Go read Papillon then stick your gold up your ass.


I suggest purchasing 1/10 - 1/4 oz coins. Trust me on this.

swmnguy's picture

Yeah, the 1 ouncers hurt.  Especially the milled edges.

HRClinton's picture

You sound like a Dealer, seeking Max Margins.

Is that you, Peter Schiff, flogging your gold cards? 

Yes, even I know about your gig, your shtick. 

Arrest Hillary's picture

Mexican Peso surges .... the Dollar going south ?

Fed-up with being Sick and Tired's picture

Yes, go back and look at DX: we have DOLLAR LONG INTO FED rates (news) and dollar SHORT post news. Happens consistently. GOLD IS LONG NOW. So is silver.

c2nnib2l's picture

time to whack it 

Due North's picture

Silver was at $18.42 OZ the week before, when that massive notional head-shot was delivered. I'm curious to see how prescient the deep state mathematics were in their calculations to drop PM's before Yellens most recent stage performance. I'm wondering if silver will land back on $18.42 by week's end.

Dragon HAwk's picture

So instead of how much Gold does your  Government Have, it should be How much Gold do your Citizens Own..

   can't wait till the Government tries to buy gold from us and we say.. Nah...

29.5 hours's picture

of course, with a government gun to our heads, "Nah" means "Sure! Take our gold! Glad to be of service!"

Due North's picture

I couldn't prove this theory, but I firmly believe that the vast majority of gold holders are most likely gun holders..... and not just a single .32 six-shooter either.  I'm also fairly certain that in the event you speak of, those holders will freely dispense other metal in response, even at risk of personal life and safety because gold and guns are also statements of freedom, liberty, and Independence from others telling us how to order our lives.

Budnacho's picture


And it's also for that reason alone that forceable confiscation won't occur. Remember all those "Cash for Gold" places years ago?...think that on Steroids in the future....

theeseer's picture

This is the Confederacy all over again minus the slavery issue but plus the immigrant issue and the new liberal majority with absolutely no morals, patriotism or common sense. You can post all the facts you want about the 114 Latino gangs in SF and Oakland and their 60% illegal members and all you get is California is perfect. ETC. The Mass Attorney General and Hawaii overstepped their Constitutional authority and saying Trump's ban is anti Muslim is ridiculous as a dozen Muslim countries are not affected but with a corrupt Judiciary and Soros having bought the ACLU the only alternative is to stock up on gold and guns which is sad. Inflation big time is coming with the trillions in phony paper printed in the last 8 years worldwide. Add to all this the freedom grab that is sefl driving cars and robotics and you have a world that you won't recognize in 5 years.

JTimchenko's picture

The run up in gold prices has nothing to do with the Fed, and everything to do with yet another game the synod of banksters is playing on the market. Banksters are now steadily buying physical gold bars in huge amounts and thy want prices low while they buy, but fear putting them too low, because there are massive bids for physical gold, by non-bank buyers, concentrated at or slightly below $1,200 per ounce. Now, some of those bids seem to have been raised.

The banksters do sudden huge bursts of paper-based short sales to sow panic in the market. This keeps prices low so they can buy cheap. Then, they cover their shorts methodically, and buy into the wild short selling that the momentum-based hedge fund idiots reactively engage in. By next month, the foolish over-leveraged hedge fund managers will lose a fortune as gold prices rise fast. That will happen as a result of the hedge funds being forced into delivery, as they scramble to find the gold bars they don't have, to deliver to the banksters.

Come May, after the big deliveries are done, gold prices will, again, decline from levels reached during the April big delivery month. That's because the banksters will strike again, with strategic and coordinated short selling, bringing prices down so they can trick the clueless hedge fund managers into selling even more imaginary gold to them. The big problem for the hedge funds will be that the banksters are going to call the futures market bluff. The hedgies will lose and the banksters will steal their money (aka hedge fund investor assets), as the process I just described in the preceding paragraph is repeated. The hedge funds, once again, will be stuck with physical delivery obligations on positions they thought were paper-only, and they will be forced to scramble to find physical gold bars. Meanwhile, the overall process will cause gold prices to rise steadily.

In the meantime, as they buy, the banksters still must be careful to insure that prices stay barely above the big physical buying bid levels. At the moment, those bids are bunched up at or just below the $1,200 mark. My suspicion is that someone raised the bid for physical gold, and the banksters saw yellow, as they faced the prospect of delivering huge quantities of hard yellow metal that they don't want to give up.

Aside from the sudden increase in some big buyer's bid, yesterday, generally speaking, the overall bids will be steadily raised as the process unfolds. That is because the banksters will make sure that the orders cannot be filled. They will not allow prices to fall that far. Prices will never be torpedoed below the level of the massive physical buyer bids. The reason is that the banks would lose all the gold bars they are so busy collecting and their bullion bank divisions would be forced into insolvency.

Eventually, when push comes to shove, the Synod-banksters will cash-settle all the obligations of their London bullion bank divisions, and close them down, but they want to do this on their schedule, not that of the physical buyers. And, they want to accumulate lots of physical gold bars before that happens.

To understand what I am saying, here is some information I found persuasive. Read other articles by the author of reference #1. They are all on his website, and he has been almost exactly "on-the-money" as to price and timing since November. Make absolutely certain that you also listen to the Andrew McGuire podcast.

DC Beastie Boy's picture

"There's a lady who's sure all that glitters is gold"

The Grim Teacher's picture


Yaaaaaawwwwnnnn! Wake me up when gold is $5,000 an ounce that'll be a reasonable surge. These cunts with the monkey hammer have to run out of ammo at some point. This is getting to be a little tedious now.....

BingoBoggins's picture

Looked like a knee jerk reaction to me. Give it a week.