Gold Slammed On Massive Volume To Key Technical Support On GDP Beat

Tyler Durden's picture

The better-than-expected second revision for Q3 GDP prompted algos to instantly dump yen and precious metals.

Gold was slammed down top its 100-day moving average on around 45,000 contracts (almost $6 billion notional)...

 

The Feb Gold futures contract is finding support at the intersection of the 50- and 100-day moving average for now...

 

Silver is also suffering after being beaten down from its 200DMA (red)...

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cossack55's picture

Slam that baby down to pre-FDR levels and back up the truck

BaBaBouy's picture

CB'ites Are Worried, Very Very Very WORRIED . . .

RAT005's picture

$16.60 silver :-)  I've been waiting....order placed for moar!

Haus-Targaryen's picture

I find it interesting the powers that be are in the fight of their lives to keep AG and AU suppressed, while they aren't pumping and dumping the cryptos. 

If the Cryptos are really the end of fiat, and AG and AU has been replaced, why focus just on one and not the other? 

Winston Churchill's picture

It means they have control already and see them as no rival.

Problem reaction solution.

SoP is to create the problem,so theirs is the only solution.

Its not going to be pretty when the hammer drops, and drop it will.

Power can only be taken back from their cold dead hands.

fbazzrea's picture

another possibility...

CBs perceive the wealth effect translating from stock exchanges into the crypto exchanges similarly while PM investors (stackers) take wealth out of the system when they store their bullion in vaults, home safes, etc.

plus they know they can pull the plug via regulation if things get too out of hand.

i dunno... maybe?

DisorderlyConduct's picture

Cryptos will get hammered the same once they are traded like gold and silver. Right now cryptos are a proxy for gold and silver because they are in a freer market.

Once cryptos are brought to heel, the pivot will be into other asset classes, with an attendant inflationary impact. Then gold, silver, and other assets will pop some. It's not like the guy that put his life savings into crypto will feel safe with everything in one basket.

And anyway, a new millionaire deserves a few nice things... same story time and time again the world over. The spending will cause inflation.

Bush Baby's picture

People dumping AU & AG and buying BTC - lol

 

justdues's picture

Hmmmm ,me too, great comment . Maybe the "Hidden Hand" wants the mania focused exclusively on the cryptos so they can properly perform their job of destroying all the fiats first ? When the job is done then they unleash the gold to tie the cryptos to tangible earth. All lesser cryptos quoted in BTC , BTC itself quoted in Gold ? Something along those lines ? Putrid called it , Nov 1st ,phase 2 of the Reset and voila a few days later cryptos go nuts . The Reset is happening .

Ghordius's picture

cryptos can't be the end of fiat currencies. not if they are allowed to zip up or down. or even encouraged (who told you nobody is pumping up BitCoin? you don't know, you can't know)

rule number one of currency: it has to have the least volatile, i.e. most price stable item on the market

it does not matter if it's sheep, salt, tobacco seeds or chits. it has to be the one item you use to compare all other items

to put it bluntly, if the currency in your pocket looks like it could appreciate wildly... you keep it in your pocket and use something that does not look likely to do that. that's one reason you don't go shopping with gold coins, but with notes or cards

rule number two of currency: it has to be widely recognized and accepted. and easy to use, of course

and how is this usually achieved? with a market maker, be it a prince or a gov or a national bank. best in the use for tax gathering, which forces demand for it

now... gold (and silver). interestingly, all those shenigans make gold quite price stable, lately. relatively, yet

the more it becomes stable in price, the more it is possible that it might come back as currency

you see? currency usage is in conflict with speculative usage. but not necessarily with wealth storage usage

de Cosmos's picture

If they figure out a way to short -- indeed, naked short -- the cryptos, then they will manipulate them.

Hugh_Jorgan's picture

The door is open for seasoned CryptoBugs. The curve on BTC is going vertical. You know what that means.

IMHO, crypto will end up exposed as an unwitting honeytrap for wealth that will be slurped up by algos during the inevitable retracements that are forthcoming.

If you bought BTC early on, it's time to consider moving profits into the only commodity that will never be worth $0... gold. The price is even being discounted for you. What goes up must come down.

HardAssets's picture

In general I agree. Except people (including me) were expressing those same sentiments when BTC was $1k. Yeah, it’s probably tulip bulbs, but how high will they go - $20k ?

Hugh_Jorgan's picture

Do you REALLY want to find out while your head is hanging out the window? Enjoy your gains, don't lament what you left on the table.

RAT005's picture

There isn't a market to short Cryptos so they can't use printed margin to sell what doesn't exhist to run the order book.  Though today NSDQ has announced a BTCN futures market so maybe it's coming....

Seasmoke's picture

Speaking of backing up the truck. I haven't heard those words in a long time uttered by anyone around here in long long time. Looks like everyone is finally given up on Gold. The bad guys win.

RAT005's picture

Price smashes just haven't been appealing enough lately, but I think this one (Ag) is a winner.

wise_owl_says...'s picture

6 bln paper gold for 6 bln digital bitvapor. drive up price to get more plebs to pile in at top. smart money is quetly converting bits to real, physical, and tangible assests. phyzz silver is deal of century. never again in future generations will anyone have opportunity to gain something soooo precious for soooo cheap! go spend your ripples and bits of paper on a real vampire (bankers and bacteria) killer. 

Justin Case's picture

MACD looks good and there is a doji candle so far. They are protecting the 1300 level. If it's the same play as usual, gold will tap 1300 level 3 times then break out.

wmbz's picture

So... What's new about this?  Not one thing.

ParkAveFlasher's picture

$6B buys them six bucks off the gold price.  Keep pumping up crypto, tptb, and keep drawing up all that hot, woefully desperate money flowing into it, and do keep trying to cool down the POG with fake liquidity, but know that there isn't enough electricity in all the earth to hold back real money.

Wile-E-Coyote's picture

Maybe the Crypto thing is designed to tempt PM owners to dump their metal and jump on board. Some will do just that.

Gazooks's picture

some unnecessarily will

 

Au, Ag + BTC = authentic value

 

it's tokens and FDR's to dump

 

Justin Case's picture

$6B buys them six bucks off the gold price.

The fake market and the real gold market is the SGE where the real men trade. CRIMEX is not real. It will soon become an irrelevent price discovery. The coin shops will show you what the real price is. Do you want a picture of a coin or the real deal?

Wile-E-Coyote's picture

I would love to see a graph of the reducing potency of these smackdowns.

Justin Case's picture

Just go to the commitment of traders of the futures data page and you can see all the current positions by all groups of speculators. Shorts, longs and spreads.

bcking's picture

I keep telling you guys they'll never let it above $1,300 again. Monkey-hammered!! Glad I switch to BTC a long time ago.

Bendromeda Strain's picture

This THEY that you refer to, they do what they do in order to protect the image of the dollar.

Bendromeda Strain's picture

The day that your bitcoin poses the same threat, you will see how diabolical that they are. Their owners still hoard metal, btw.

ArgentoFisico's picture

They cant pull the rope that hard... incredible enough there are MINING COSTS and some PHYSICAL is still traded

GlassHouse101's picture

you really are the village idiot aren't you? lol

Justin Case's picture

they'll never let it

Gold-market manipulation, the story that gold has been subject to a long-term price suppression scheme is easily debunked.It's easy to point out that all markets, including the gold market, are manipulated. They always have been and they always will be. Presenting evidence that the gold market is manipulated is like presenting evidence that the Earth revolves around the sun — it's true, but useless information in this day and age.

Evidence of gold-market manipulation is not evidence of long-term price suppression. Yes, if long-term price suppression was evident, then it would be an example of market manipulation, but market manipulation generally does not involve long-term price suppression. I purchased gold for $284.00/oz. That is far below the current manipulated price today. You cannot purchase gold anywhere in the world for $284.00/oz. Does this indicate that the price is being manipulated up?

bobsmith5's picture

Cryptos are signaling the state of the dollar a job that precious metals should have been doing. They have openly admitted to the necessity of suppressing the price of gold in order to preserve the international reserve currency status of the dollar. This proves a long term intention of suppressing the price of gold. Manipulation of the price on a daily basis is how that suppression is maintained over the long term. The fact that it is up long term shows the limits of that process.

If it were not for the suppression/manipulation precious metals would be where cryptos are today. By suppressing/manipulating the precious metals it is possible to give the dollar the power necessary to manipulate all markets.

ah-ooog-ah's picture

I have a new boat, I need to test it on the lake...

Winston Churchill's picture

Put your lifebelt on,appalling seamanship is standard on ZH, just like in the USN.

eclectic syncretist's picture

I don't always take my newly acquired gold out on my daily excursions, but when I do, it's always on a boat.

Worst luck ever.

MFL5591's picture

The worst investment of my entire life was to buy Gold and Silver,  It is a shit investment and nothing more that a fucking game for these banker cocksuckers!

eclectic syncretist's picture

How about a petition to audit the Comex and end naked shorting there? It's a swamp if there ever was one.

silverer's picture

I wonder if anyone in Zimbabwe has said that recently?

Scuba Steve's picture

dunno, but I think that I heard the screaming for it from Venezuela ...

A82EBA's picture

to keep my sanity i just think of gold as long term storage and not investment or inflation fighter. Got bitcoin for that

Wahooo's picture

It’s at best a post-apocolypse medium of trade ir cash and cryptocurrencies cease to exist. It’s not an investment and likely will not be useful in our lifetimes. But it’s there just in case.

silverer's picture

I can't wait to see what happens when Russia and China get their financial exchange systems firmly in place so that the US dollar and SWIFT is no longer necessary to their economies, then put a 500 billion gold purchase contract on COMEX and demand PHYSICAL DELIVERY instead of worthless paper cash to settle the contract. Have your fallout shelters well stocked, folks.

katchum's picture

GDP is beating because of higher deficits. And more GDP beating is going to come with even higher deficits next year.

https://fred.stlouisfed.org/graph/graph-landing.php?g=7yDt

Bendromeda Strain's picture

Correct. The beatings will continue until they don't.