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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shizzledizzle's picture

They apparently saw your comment.

 

Badsamm's picture

At least they knew they’re a bag of cocks

Give Me Some Truth's picture

No, I suspect they get a rush from sticking it to us "god damn gold bugs"

Justin Case's picture

bag of cocks

Moar like a jar of crushed ass holes.

Give Me Some Truth's picture

Don't encourage them. If these people are the psycophath types I suspect they are, they are enjoying this very much.

 

 

Justin Case's picture

In the long run they always lose. If they had control of the price we would still see $35.00 gold. China and India are the largest buyers of gold in the world. That is a ratio of 8:1 buyers of gold compared to mericans.They won't be holding bitcoin or India putting them on the bride at their weddings.

CBs around the world continue to buy gold not cryptos.

Turin Turambar's picture

I'm so glad I unloaded my rigged pm's.  

Apostle of Unknown's picture

Perfectly reasonable, over the past few weeks there had been big speculative long positioning without any price gains. Let's meet again in January 2018.

JonNadler's picture

pure price discovery....around 10AM every day

Give Me Some Truth's picture

... On A,B,C, D, E, F, G ... X, Y, Z "news." That is, on any news. That is, the news don't matter, man.

Clowns on Acid's picture

Chinese enjoy buying physical at artificially low prices based on Western CBs paper selling of gold. 

runswithscissors's picture

You should enjoy buying physical gold at these sale prices too...don't let the chinese get all the bargains...use some of those bitcoin profits man.

Give Me Some Truth's picture

True. If they are going to give it away, I guess you let them give it to you. Maybe your kids or grandkids will benefit.

When the national debt gets to $900 trillion, will silver still be $15/ounce? Probably so.

Seasmoke's picture

Fuck em. Continue to Buy physical Gold and if doesn't work out then kill the motherfuckers.

divingengineer's picture

Even the worst gold crash in history would leave you with $250-$400 gold. The dollar can hyperinflate away in a couple months leaving you with pennies to live on. I would have some gold, some silver, some food, some dollars, some protection and some first aid supplies tucked away in the garage if I were you. What could it hurt to have a few dollars worth of BTC too? Recent history shows people turning to CCs when their currency goes titzup. 

Give Me Some Truth's picture

In your $250 to $400 gold hypothetical, silver would plunge to around $5/ounce. The face value of a silver Maple Leaf ($5) could be more than the silver value in the coin.

I don't know who is going to keep mining at even $13/ounce.

FWIW, in a world of limitless debt and soaring deficits, the value of fiat should be plummeting. I do recognize "should" has nothing to do with anything. 

 

 

Bemused Observer's picture

A crash of that magnitude would almost certainly include the prices of everything else, so you'd probably stay about where you are now comparitively. THAT'S what gold really does for you, it let's you keep your head above water. You aren't going to get rich, but you won't go broke.

 

The reverse is true as well, btw. If gold goes to 10,000, it's likely a loaf of bread will be 25.00, etc...6 of one, half a dozen of the other...

Justin Case's picture

I don't know who is going to keep mining at even $13/ounce.

AISC are between $13 for the low end and most are over/near $16.00/oz. There is one company that derives 70% of it's revenue from silver  production. The other are far below that. They have other metals to cover the costs of mining the silver. We are at the lows for metals and PM miners. There will be a 300% move in the share prices within the next year.

Kaiser Sousa's picture

That's the spirit...

Glad 2 see the attitude adjustment...

Give Me Some Truth's picture

Fewer and fewer people are buying physical gold and silver ... because fewer and fewer people think the prices will EVER go up. I mean, what would give us such a crazy idea?

Many "stackers" - the most avid believers in monetary metals - have already acquired their/our ounce goal. We don't need to buy more. So who is going to be the new buyers? What fool would buy when everyone can see that the price is capped? What fool really thinks they can beat "City Hall?"

BTW, this is the collective mindset the riggers hoped to achieve. Mission accomplished.

 

 

 

 

I woke up's picture

Sounds about right, gov't shutdown looms and the CB's dump (paper) gold

It's a psyop

divingengineer's picture

A psyop for who? Complete Retards? Who, besides institutional investors, believes this bullshit manipulation?

It is a good buying oportunity I guess, nothing more. 

I woke up's picture

You answered it

Complete retards, there are alot of retards out there though

dietrolldietroll's picture

 October 6th was lower. The headline is wrong.

buzzsaw99's picture

it needs to crash (20%) in two weeks for me to be right.  somehow i don't see that happening.

tropicthunder's picture

Once it breaks $1260, then your gonna see funds panic selling the fuck out of GC..

Dangerclose's picture

I'm salivating just waiting for them to do this to Bitcoin.

 

So I can get it cheap! Bitcoin supporter here!

Sky flyer's picture

Trump just moved embassy to Jerusalem folks. Let the shit storm commence.

66Mustanggirl's picture

Why yes he did. Can’t afford gold, but just added to my tidy little nest egg of silver! Merry Christmas to meeeee!

divingengineer's picture

Trump just SAID he was going to move the embassy. Big difference. 

Talk is cheap. 

Bobzilla. Do not piss him off's picture

Blatant manipulation. No trader, other than, pure manipulators, exit long positions by dumpring it all at once. A trader would gradual unwnd those contracts, so as to NOT slam price. When is the CFTC going to do their jobs?? Fucking useless bags of shit.

Cognitive Dissonance's picture

Begin message:

The CFTC's job is NOT to do it's job. Got it? Don't wait for any deep state controlled entity to do anything that does not protect the status quo.

End message:

Bay of Pigs's picture

I guess people forget names like Brooksley Born who saw the crimes and injustices and tried to do something about it. She was silenced and pushed aside by Alan Greenspan, Robert Rubin (then Larry Summers) and Arthur Levitt. That would be the heads of the FED, UST and SEC.

https://en.wikipedia.org/wiki/Brooksley_Born

End message.

Give Me Some Truth's picture

I did NOT know about her. I read your link. Thanks for providing. She DOES sound like just the person "our side" needs now. What happened to her? Is she still alive?

Someone needs to ask her specific questions about the monetary metals futures and options "markets." This interview doesn't really talk about this specifically. The point that resonated with me was how she again and again refers to these "dark markets" and how there is "no transparency."

This is of course by design. This is of course why we will NEVER get an audit of the Fed. The actions of the Fed also have to remain in the "dark," no transparency allowed.

One question: Why in the hell does EVERYTHING have to be secret? If you had nothing to hide, this would not be the case.

 

 

foxenburg's picture

@Bob. The name of the game is not to unwind contracts because there are none to unwind. The idea is to slam the price down the mostest in the fastest......and meanwhile pre-position yourself to buy back what you've sold at a lower price as everyone sells. Easy peasy if your credit line is good for a billion or two. Seriously, what's not to understand? We've watched this same ole same ole for years and we still get these comments pointing out that a rational trader would have handled it differently. Today's trader seems to have trousered a pretty rational few million.

Give Me Some Truth's picture

Right. Who is "rigging" the markets? Who has an unlimited line of credit big enough to meet the margin requirements to do such trades?

The people/banks doing this are tapping into the limitless output of the fiat printing press. And they are doing it to protect this same printing press.

Bay of Pigs's picture

At the heart of it is the ESF.

 

Give Me Some Truth's picture

You want to see a real "profile in courage?" Show me the ONE PERSON who could do something about this who is willing to do something about this. There is no such person. There's a reason genuine courage is so rare. Such a person would be risking their membership in the "establishment club." They would be taking on the Powers that Be. The Powers that Be do not attack other members who are also Powers that Be. This would require something called "courage." And someone who possessed a quality known as "principles," among these principles the "principle" of fighting that which is wrong.

Our side needs a hero to make our case and deliver that thing called "justice." Because there is no such hero there is no justice.

 

 

Give Me Some Truth's picture

I read your link. I agree someone like her in the same position she held might make a difference. But if she was a real hero, she would be screaming even louder today about what is happening in the "dark markets" of gold and silver options, futures and derivatives. Maybe she is now deceased? Seems to me that she tried to fight the good fight for a while, but even she eventually said, "screw it. I can't change anything."

Bay of Pigs's picture

Yes. She resigned and rode off into the sunset.

The CFTC has never been heard from since aside from Bart Chilton making some noise before he threw the towel in.

There are no regulators. There is no enforcement at all. It's a farce.

Jason T's picture

got a bear credit put spread on gold .. expires friday.  so long as GLD statys under 121.

jonebize's picture

This shit is so fucking cheap right now. 

Michigander's picture

"This shit is so fucking cheap right now."

So are buggy whips, but Im not stockpiling them either.

afronaut's picture

Thats exactly what was said during the Dot com bubble. 

Michigander's picture

Let me rephrase...Im not stockpiling any MORE buggy whips. I already have lots of them. You have enough too...you just dont know it yet.

Give Me Some Truth's picture

Paper money (or digital money) that you can print too infinity as you need it is the future! People will always have full faith in this currency not losing its value.

Consuelo's picture

 

 

This is getting old, but it bears repeating...

The only question one need ask with regard to Western gold markets is:

How important is it for the Western banking/financial establishment to portray their currency and bond/debt markets as sound?    And to that end, how important is it for the same geo-political structures to portray a time-honored barometer of a nations financial health as an archaic anachronism, with no intrinsic value other than a diversionary play-thing for speculators...?  

Clock Crasher's picture

When this variety of manipulation comes to an end in years/decades Gold will reset and take the absolute minimum passengers along for the ride.  

This shit is getting old.  

Give Me Some Truth's picture

The depressing and demoralizing point is that this "shit" keeps happening and nobody who matters cares. Corruption is accepted. The possibility of it existing is not even allowed to be considered, certainly not investigated.