Someone Just Dumped $4 Billion Of Gold Futures Ahead Of Comey Testimony

Tyler Durden's picture

Just minutes ahead of James Comey's testimony that many hope will lead to Trump impeachment, it appears someone decided it was an opportune time to dump $4 billion notional gold futures, seemingly confident this will not be a "constitutional crisis."

Over 30,000 contracts suddenly flushed ahead of Comey...

This move takes Gold back to the top of Payrolls day levels and still well above $1262 (50DMA) support levels.

Silver was also whacked...

 

Which did break key technical support...

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BaBaBouy's picture

ANDddddddddddddddd Its "PAPER GOLD" To the Rescue ...

ParkAveFlasher's picture

$4B now will move it $.50, but $1B used to move it $.75.

SoilMyselfRotten's picture

Could be a pre-emptive smash in case the Comey thing pushes it up

ParkAveFlasher's picture

I'm not a technical trader, but looking 6 month chart, a fallback to around 1230 may be expected without breaking the up channel.

It will also be partly cloudy today.

EDIT: meant $50/oz above, you guys know what I meant.

tmosley's picture

Gold will continue to be smashed until goldbugs make such paper moves irrelevant by buying crypto.

The market needs a signal that central bank policy has failed. Gold and silver usually are the ones that make that signal, but they are being jammed very effectively. They can't do that with bitcoin, etc.

The_Juggernaut's picture

Oh no!  The people who control the Internet just fucked your ability to use your shitcoins!

 

Explain how that will be impossible or even unlikely and you may be taken seriously.

Scrimpy's picture

Sorry about that guys, I needed the money.

 

I'm buying Monroe County WV tomorrow.

Bastiat's picture

2 sponsored links to Harry Dent on ZH this morning calling for gold to $700.  Pure coincidence!

tmosley's picture

>The people who control the Internet just fucked your ability to use your shitcoins!

How? Magic?

Seriously asking. If you can't come up with a mechanism by which they can SOMEHOW make it so that coins can't be spent WITHOUT shutting down the entire internet and thus most global commerce, then maybe I can form an actual responce.

Until then, stop doing shit that doesn't work. That is what losers like Democrats do.

Mr. Universe's picture

I know the internet is bullet proof. However you make it sound like these 1's and 0's are really coins that have a value other than "Let's start a club and we can have our own money" It all works fine until it doesn't, on that day you will realize, only too late, the power of the dark side.

tmosley's picture

You sound like Krugman talking about the internet.

Keep doing what you have always done, keep getting what you have always gotten.

MANvsMACHINE's picture

"Let's start a club and we can have our own money"

 

That's exactly what is happening and the club is getting bigger and bigger.  Soon it will be a big club and you won't be in it.

Mr. Universe's picture

It's OK

"I DON'T WANT TO BELONG TO ANY CLUB THAT WILL ACCEPT PEOPLE LIKE ME AS A MEMBER"

Exalt's picture

Given how religiously you support Bitcoin, I bet you have put the house, wife and dog into it and are just trying to farm up a greater fool to get you out with a profit before you lose it all. You talk about cognitive dissonance but really if you were so confident in Bitcoin you wouldn't try and tear everyone a new asshole for not buying it. You would be out celebrating in the knowledge you just made the best trade of your life, but you're here shitposting like you're butthurt you bought a bubble. Your "faith" in the "invulnerability" of the internet is touching, if nauseatingly naiive.

eclectic syncretist's picture

4 Billion in naked shorts at the bucket shop LOL. 

OceanX's picture

Ever hear of packet radio? Or bit torrent?

Ever try to get rid of fire ants?

jaxville's picture

  I don't think the state will interfere with crypto currencies as long as they are attracting funds that would otherwise go into physical precious metals.

  I wonder how much of that dough is right out of central banks?  

  The few businesses that accept bitcoin are not paying their staff or suppliers with it.   They are usually small businesses which allow the owners to speculate in it.  Those who accept it to increase sales convert it to the local currency they can actually use at point of sale. 

 

OpTwoMistic's picture

4 billion to drive gold down 18 for a moment.  What does that tell you?  Plenty of folks and China just received a 18.00 helping hand.

tmosley's picture

That's what everybody used to say when gold was at $1750.

Now, years later, they keep repeating it to themselves, over and over. Like a crazy person, rocking themselves in a padded room. Dangerous to themselves and others.

Insanity is doing the same thing over and over and expecting a different result. Time to try something different.

Bay of Pigs's picture

WTF are you talking about?

Sounds like you are the one who is unhinged.

tmosley's picture

Probably because you are experiencing cognitive dissonance.

ParkAveFlasher's picture

You are time-challenged.  Gold touched 1750 (actually wnet through to 1900 from there).  It didn't hang out there, and it certainly wasn't channel-bound for 3 years anywhere near there, to withstand constant monkey-hammering at that level.  We are hereby establishing a new floor, it seems.

tmosley's picture

Yeah, Turd said the exact same kind of shit for YEARS. Even had to literally eat his hat.

And here we sit.

But you idiots want to keep doing what you have always done, rather than trying something different.

OpTwoMistic's picture

The guy in the basement of the FED doing this fraud probably has no PMs.

fockewulf190's picture

Looks like no one is scared about the CFTC's new guy in charge.

ZorroHedge's picture

Funny how you get 7 downvotes. Probably by some old people that don't know how to switch on their computer. I am a bit tired of these gold bugs with how proud they are stacking gold and silver while gold and silver keeps getting hammered nonstop. I saw the gold chart today and it broke the downtrend. So I knew this dump was coming. Gold, silver and crypto ... I love all 3. There is no need to see the other one as the enemy because you don't know how to connect your PC to the internet.

Scuba Steve's picture

What did you think yesterday or the day before from the charts on what was going to happen today, Thursday?

Raffie's picture

NO WAY!

They did wut?

LOL. called it days ago. Criminals love this crap.

MalteseFalcon's picture

"The market needs a signal that central bank policy has failed. Gold and silver usually are the ones that make that signal, but they are being jammed very effectively. They can't do that with bitcoin, etc."

I agree that BTC is leading  the fight to pull the FED's pants down right now.

And I'll be curious to see what counter-measures against BTC appear.

But once the FED's pants are pulled down, PMs will be a stronger buy.

tmosley's picture

Doubt it. All the energy will be in the crypto space by then, and their fundamental virtues in the age of internet commerce will become obvious to ALL.

Gold and silver are dead. The arrival of asteroid mining will only cement that fact.

83_vf_1100_c's picture

Asteroid mining? Fucking dreams.

To Kobe under me, PT is down because of Tesla, no catalytics ya know? Sarc

ParkAveFlasher's picture

lol.  Wake me when mining on earth is profitable, then we can turn on our MuskVision goggles and peer into the future, where the (actually very tiny) assorted rocks flung across billions of miles in space will be surveyed, reached, blasted through while collecting the bits and pieces in zero gravity, refined with huge volumes of acids and water readily available, etc. just so gold on earth can be monkeyhammered in price, oh wait that already happens through the simple means of fiat issuance and market manipulations.  

Space mining ain't like dustin' crops, boy!

By then I will be promoted to the Space Ranger Fighter Legion, me and my cybernetic dog-man hybrid German Shepherd sidekick Rolf, and we can take this duel into space with our neuro-controlled ion flex-wings going PEW PEW on the islands of Ceres, where the Amazonian warrior-harems fly atop xeno-sphinxes in bikini tops and little fluffy bottoms!

But back in reality, you ever try just digging a hole, into regular dirt, with a regular shovel?  Very hard work, it is, and that's with gravity assisting you, an ample supply of liquid water, constant temperature, pressure, radiation, gas levels, oxygen, etc.

What the "virtual" people don't understand is that although the technology to build more and more complex calculators grows exponentially, so does the tendency to apply complexity to what simplicity would easily address, and yet, so does the impotence to affect reality on a sustainable basis. 

I love when people who work on data all day speak of the universe in terms of data.  Every problem is not solved with a hammer.

el buitre's picture

"Gold will continue to be smashed until goldbugs make such paper moves irrelevant by buying crypto."

 "Goldbugs don't buy gold toilet paper" - they buy phys.  (Well maybe King Salmon buys gold toilet paper).  Lord Blankfiend and Hymie Demon buy paper gold  futures and naked short them.

Kobe Beef's picture

Partly cloudy,,,

and platinum is still dirt cheap.

cheaper than gold. imagine that.

ParkAveFlasher's picture

I'm no Jim Sinclair, World-Renowned Gold Master Predictor Poet Laureate and Game Show host, Mr Gold himself, nor Bix Weir and his rainbow magic koloring book karnivale, nor Bo Polny who has charted the price of POGS since 1983, nor did I invent the historical computational wowee-wave antenna like Martin Armstrong, and I'm not selling a newsletter (yet), won't see me on KingWorldNews with THE MOST IMPORTANT INTERVIEW EVER, or FreedomPatriotNewsWatchDog.org, getting interviewed on youtube, but I know this, that for a barbaric relic like gold, there sure is a lot of attention paid to it, to cover it up or to weigh it down.

Not sure if platinum, which has industrial usage as an emissions-cleaning catalyst, would suffer some sort of demand falloff with non-green regulatory environment, but it is notable.

jaxville's picture

  Platinum use is correlated to economic activity.  It has many other uses as a catalyst besides treating auto exhausts.  It can also be substituted with other catalysts such as palladium or even asbestos in some applications.

  A serious recession would see demand for catalyzing agents fall. 

Scrimpy's picture

All of my extra $ is going into platinum, rarer than gold with actual uses.

fockewulf190's picture

In order for silver to equal $50 of value in 1980 dollars (it's all time high), it has to today reach a price of $165.63. Right now, it's priced at $17.50, the equivalent of $5.28 back in 1980. The demand for silver today is light years beyond what was needed back then, and yet the price is incredibly low. It has been, and continues to be, the most suppressed precious metal on earth. It is an absolute bargain.

Give Me Some Truth's picture

If you are not planning on dying any time soon, it is a buyer's paradise. Now, buyers are going to have to wait for the riggers to get their karma. Karma is taking its own sweet time arriving. But it will. The laws of economics have not been completely discarded. Central planners and Central Manipulators always produce the opposite result of what they intended ... eventually. Anyway, if they are giving you gift prices, take them.

fockewulf190's picture

What is even more incredible is that on a normal trading day, the amount of silver being traded routinely equals at least half of the TOTAL amount of physical silver mined in a whole year....and that is just the reported amounts of trading. Some days its much more. I am not aware of any other market, outside of the precious metals market, that is subjected to such trading conditions (to include the lack of enforcement by the trading regulators). The fact of the matter is, even those who produce physical silver refuse to defend there own interests when it comes to the blatant market manipulations it is being subjected to. The legal fighting going on in the courts have been mostly initiated by large investors, not the silver industry. It's like everyone who could, or should, be doing something to legally stop this from happening, don't, because they are routinely being paid off in order to keep the status quo running. That sounds so preposterous in and of itself, yet this shit has been going on for YEARS.

Give Me Some Truth's picture

The miners are simply afraid to risk the ire of A) The Government(s) - which do permitting, have enviro regs, IRS's, OSHA and/or B) the big "bullion banks" - which provide the financing they must have. The CEOs and top managment of these mining companies are paid very well regardless of the price of their commodity. Anyway, they are afraid to rock the boat and take on such powerful entities - both of which could put them out of business. It's a form of extortion. Intimidation. They know they better not make a fuss.

They are wimps - and certainly lack true grit - but their fears are not unfounded. But they DO know the price of their product is being suppressed. They are not stupid. It would be nice if someone stood up for their shareholders and employees ... and the rule of law and right and wrong. But this only happens in movies, I guess.

tmosley's picture

Production is also higher, and energy is in the toilet, and will go further into the septic tank over the coming years, making mining even cheaper.

Go for the stuff with the defined max supply.

Exalt's picture

You've never been on a mine in your life have you...

GunnerySgtHartman's picture

Not sure that platinum and gold are exactly equivalent from a "wealth protection" perspective.  As noted in other comments, platinum is an industrial metal, far more than gold is, and the price of platinum tends to align itself with the strength of the economy.  Of course, if people think that the economy is about to get a lot stronger, then platinum might be a smart buy ...

Kobe Beef's picture

I don't know either Gunny. 

Geologically speaking, it's ten times more rare than gold.

Economically speaking, it's just off historical lows (ratio wise) to gold. 

Popularity speaking, even Dr Dre knows platinum is better than gold.

So I buy whatever precious is cheapest. and sell whatever precious is dearest. And just keep rotating to get more stack for less cash.

nmewn's picture

Which is the problem in "valuing" it in fiat terms. 

They can counterfeit paper night and day to do it, now if it were valued against the purchase of corn or oil as it really is money...well now  ;-)