Gold Breaks Below Key Support, Drops To 4-Month Lows

Tyler Durden's picture

At 0907ET, someone decided it was the perfect time to dump $1.5 billion notional worth of gold, smashing the precious metal below its 200-day moving-average and back down to 4-month lows...


And so, once again, gold futures are tumbling...


To 4-month lows...but still up around 10% year-to-date...


What's driving the gold weakness? Who knows... because it's not the dollar...


Though Gold's sensitivity to USDJPY has picked up notably...

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shitshitshit's picture

why? time to buy indeed.

the dollar will die and magically the thing will soar.

Haus-Targaryen's picture

I sure hope one day we figure out who is doing this, and they get a slow and painful death. Literally. 

BaBaBouy's picture

Just Check the Cotts, look who did what to Paper GOLD last week ~

It Don't Take Einstyein to Figure it all out ...


eclectic syncretist's picture

Attention General Secretary Xi! Attention President Putin! The American Federal Reserve is sponsoring a fire sale on physical gold in Aisle CRIMEX. Get it while you can.

Justin Case's picture

As Goldcore reports, the CBR has more than doubled the pace of gold purchases. In the second quarter of the year, Russia accounted for 38 percent of all gold purchased by central banks.
“Gold is an asset that is independent of any government, and in effect given what is usually held in reserves, any Western government,” said Matthew Turner, metals analyst at Macquarie Group in London, as quoted by Bloomberg. “This might appeal given Russia has faced financial sanctions.”

Brought to you by Goldcore.

Eager Beaver's picture

We already know (((who))) is doing this...

Find all of the supporting evidence your little denying heart needs here:

ParkAveFlasher's picture

What are we up to now, about $8B of hammer time in like 2 weeks, AAAND the price barely moved.  I think they're gonna need a bigger printer.

Turin Turambar's picture

A bigger printer?  LOL, the one they have prints more than enough.  You can't print more than infinity.

achmachat's picture

The guy you're looking for is Benoît Gilson.
You're welcome. 

YUNOSELL's picture



There's gotta be physical gold & silver shortages soon at these prices. If the richer people with much larger stashes were to actually start requesting delivery, there would be a huge day of reckoning. I just keep buying physical on days like today, and thank them for an early Christmas!

Kaiser Sousa's picture

U should know by now who the WHO is...

1) Western Europeon Central Banks (think the Fed & BOE in particular...

2) Exchange Stabalization Fund...

3) All of the U.S. TBTF insolvent banks...

3) Bank of International Settlements...

And that's just the short list...

And I still will be accumulating the PHYSICAL THEY DON'T FUCKIN HAVE!


Clock Crasher's picture

I've retired from buying PMs but if I were still in the game I would be making a strategic purchase of silver at SGR approaching 80 this week.  

stacking12321's picture

again with the ignorant "death to moneychangers" meme.

i've challenged you on this many times, and you've never come up with a response as to why money changers are a problem.

money changers are not a problem, changing one type of money or currency for another is a zero sum game, and doesn't harm anyone, in fact they provide a useful service.

money counterfeiters (the FED) are the actual problem, and counterfeit money is what allows naked shorting of futures ad infinitum.

if you can't understand this basic concept, refrain from commenting.



Bay of Pigs's picture

I believe he clearly stated exactly who the counterfeiters were in his comment.

Reading comprehension issues?

stacking12321's picture

I comprehend just fine

But I've challenged him countless times to explain why money changers are a problem and he's failed to do so.

He explained who the COUNTERFEITERS are, and then proceeded to blame money changers instead. 

Seems to me it's Kaiser that has the comprehension issue

Mr. Universe's picture

You apparently fail to realize the basic concept of what a money changer is and how they are parasites. The one thing it is not, a zero sum game.

stacking12321's picture

If I fail to understand that, then perhaps you can explain it to me?

Youve asserted that, but failed to provide a reason why that's the case.

If I hand you 100 euros and you give me back 120 USD, then how has any counterfeiting taken place? No currency was created and it's a voluntary transaction, one that benefitted both of us.


Mr. Universe's picture

There is an 800 pound vampire squid in the room and you need me to explain it to you. Go read the Bible, Jesus really hated the moneychangers. Not religious? no problem...

“Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.” — Sir Josiah Stamp, Director of the Bank of England (appointed 1928). Reputed to be the 2nd wealthiest man in England at that time.

Fractional reserve banking is money changing and the Banksters are the modern moneychangers.

Perhaps you need to educate yourself because if I go into Bank of America with 120 Euros I for sure will walk out with less than 100 dollars.

Try this

stacking12321's picture

you really are one of the stupidest commenters i've come across on zh, and i'll take a few moments to explain why, maybe something will sink in to that hard head of yours.

i'll set aside your religious BS for the moment, which you got wrong as well (jesus' issue was with the moneychangers operating out of the temple, not their occupation in general)


what you said is simply NOT the truth, and it is also not logical:

"Fractional reserve banking is money changing and the Banksters are the modern moneychangers"

wikipedia, for example, says :A money changer is a person or organisation whose business is the exchange of coins or currency of one country, for that of another. This trade is generally thought to be the origin of modern banking in Europe

by this definition, fractional reserve banking is NOT money changing.

the fact that you are conflating the two shows that you aren't able to understand the difference between two clearly distinct concepts.


even the final comment you made, was completely backwards:

"Perhaps you need to educate yourself because if I go into Bank of America with 120 Euros I for sure will walk out with less than 100 dollars."

100 euros to 120 dollars, not the other way around, again: sloppy thinking and sloppy comments on your part.

it is you that needs to educate yourself, as you've shown.

and if BoA, or anyone else who exchanges one country's currency for another's, offered 1.15 or 1.10 dollars to the euro instead of of 1.20, that's their business, if you don't like the offer, DONT FUCKING TAKE IT, no one is forcing you!

you've 100% failed at providing any explanation whatsoever as to how someone who exchanges one type of currency for another, has done anything wrong.

now STFU and sit down, son, come back when you have a rational argument.

Mr. Universe's picture

Trying to get through to you I might as well be talking to a turnip. Peace, except for...


Snaffew's picture

it's the Jews...always the jews

Blue Dog's picture

That's what Hitler said. He was wrong too.

bobsmith5's picture

None of the money changers are Jews. They hide behind that name the same way the communist socialist hide behind the word democrat. Your problem is that you never ever define your terms. Therefore they own your mind because they control the language with which you think. It is the Satanist who own the banks and the money changers who create the fiat out of thin air. Money changers and fiat creators are one in the same.

stacking12321's picture

wrong. completely wrong.

money changers do not create fiat. they only exchange one type of existing fiat for another.

counterfeiters (central banksters) create fiat.

they are not at all the same, undestand the difference before commenting.

Bill of Rights's picture

Here this should help you figure it out...


Before you down vote you stupid cunt..READ THE ARTICLE! IT RELATES TO THE GOLD TRADE!

Justin Case's picture

All gold-futures short selling is soon followed by proportional offsetting buying. So that guarantees imminent buying! Gold's upside price impact is identical from short-side speculators buying longs to close their positions and long-side speculators adding new longs. While normal long buying is voluntary, short-covering long buying is mandatory.

And once short covering gets underway, it quickly feeds on itself due to that extreme leverage inherent in gold futures. At 30x, a mere 3.3% gold rally would wipe out 100% of the capital risked by fully-leveraged gold-futures speculators! So once gold starts powering higher again, they have to cover fast or face truly-catastrophic losses. Their short-covering buying pushes gold higher, triggering even more buying which snowballs.

ebworthen's picture

Christmas sale!  Gold Tuesday!

Michigander's picture

"why? time to buy indeed. the dollar will die and magically the thing will soar."


booboo's picture

at least there is a "notional" gold market, all bitcoin is notional

HRClinton's picture

PREDICTIONCCs will liberate PM from the yoke of CB oppression. 

As the CC Ecosystem evolves, you will see the emergence of...

Symbiotic relationship between a CC and AU.

  - CC as global Street Money

   - AU as backup store of value


(I'm already trading BTC for AU -- Au kept safely offshore in a SD Box -- and talking to peeps who are planning to do what I describe above. Which is a big reason that I'm on the verge of leaving the US/IRS Plantation and moving to Switzerland. Zug is its CC capital, with developers everywhere.)

"CCs sans Frontières"  -- CCs without Borders"

CCs ohne Grenzen. CCs sin Fronteras. CCs bez Granica. CCs brez Meje. CCs senza Frontiere.

Tom Terrific's picture

10+ years ago I thoroughly believed you. Now, not so much, after a decade of manipulation and disappointment.

Justin Case's picture

If you are a PermaBull writing about resource markets, you simply whine about manipulation when everyone who has ever traded any market knows that all markets are manipulated all of the time.

chubbar's picture

Could very well be that with the yield curve ready to invert that the FED has decided to hold next week. If so, this could be a pre-emptive strike on gold to keep it in check with that announcement.

Give Me Some Truth's picture

At some point the dollar will die. But when EVERYONE in the world is literally invested in prolonging its life, this might take longer than we think is possible. It already has.

I do think the demise of the dollar will happen when we least expect it. When we think this is no longer possible. Who knows? We might be at that place now.

I do know that when it comes to the importance of money printing, we ain't seen nothing yet. That is more important than ever. But it will be more important tomorrow. And then next month. And next year. We think the printing press is running full throttle now. (Picture Quint in "Jaws" revving the boat motor in the final act of that movie). The engine is going to blow.

Justin Case's picture

Evidence of gold-market manipulation is not evidence of long-term price suppression. Ya, if long-term price suppression was true, 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?

PhiPhi's picture

@Justin Case

You are taking a very binary view, there is not an absolute immutable price that gold has to be held below. It is my belief based on the released BOE documents from the late 70's to early 80's covered by Ronan Manley show the intent of CB's to manage gold within a range to prevent potentially large fiat currency fluctuations (devaluations).  Gold can rise overtime but big moves upwards are suppressed for the benefit of fiat, in particular the USD and Euro, gold (and silver) could potentially be 2x current spot price or more without this manipulation. 

ZH Snob's picture

their hatred of PMs is really quite perverted.  they know the fiat system is collapsing, so they are trying like the devil to shake out the strong hands and drive it down as much as they can.  their greed is such a driving force that they really think they still have time to grab more fiat to eventually sop up the gold.

however, there are other players with other interests.  

dark fiber's picture

That's not it.  This looks like a preemptive strike.  Something big is about to happen, they expect it but it is not public yet.  Either way fuck their paper shell game.  In gold possession is the law.

ZH Snob's picture

yes, that is essentially what I am saying.  why would they want to drive it down even more than the level they've been content with for years?   preemptive, indeed.

Pandelis's picture

i have the same feeling ... it looks like a final shakedown, cleaning up whatever they can before it takes off ... it does not make sense all this effort to lower it just a few more dollars.

actionjacksonbrownie's picture

There has been a "final shakedown" every few weeks/months for years now. Today is no different...


Gold is dead.

Give Me Some Truth's picture

Re: "Gold is dead."

This is dang sure the message/conclusion this campaign has been trying to achieve for the past six years. 

The consistency of the smash downs has been the key to the operation. Body blow after body blow to precious metals "sentiment" by the boxer who is trying to protect sentiment for fiat/printing press currencies.

I think the "fight" or "war" analogy between gold and fiat is apt.

Give Me Some Truth's picture

You may be right that "something big is going to happen." Then again, this might be taking place just to send metals as low as possible at the end of the year. An emphatic exclamation point to the year to all us "gold bugs" who keep waiting for the true state of the economy to matter.

I think things have been sent lower right before the next round of "debt ceiling/government shut down" talks. In the past, this drama was actually bullish for safe-haven precious metals. Not anymore.  Because this "should" = "higher metal prices" means that this WILL instead result in "lower metal prices." Up is down. Down is up. Bad is good. Good is bad etc.

And when the next debt ceiling "crisis" is invariably averted, then the metals will get yet another smash down. All those predictions of $12 silver might materialize. Yes, at the same time the debt ceiling is extended to infinity and the national debt goes up by half a trillion in one day. Go figure.

What Should Not happen is now What Will Happen. We live in surreal times.





Give Me Some Truth's picture

This is SERIOUS BUSINESS to them. Nothing is more important than suppressing the price of monetary metals. NOTHING. 

I say this because nothing would jeopardize the fiat-dependent "status quo" more than the prices of monetary metals ascending consistently and/or rapidly. If this is NOT PREVENTED, nothing else they do matters.

Everything they value, and their elevated position in the world, would soon vanish if this "manipulation program" were not in effect.

Hell yes they are going to be ruthless and brazen in protecting their status. If the "status quo" changes they are effectively toast.



Justin Case's picture

their hatred of PMs

PMs are the barometer of a country's fiat. They are playing with the barometer to give the illusion that the US fiat is healthy. There is currently an over supply of this paper and the CB's are trying to mop it up but merican has to print or die.

Raffie's picture

Gold sure does love that 1260 range...


Sky flyer's picture

Back the fucking truck. Slam silver too you bag of cocks