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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Clock Crasher's picture

Goldmoney (XAUMF XAU) is +3%

The only Goldbank fintech company doing business in both crypto and physical PMs

Gold up - Goldmoney goes up

BTC up - Goldmoney goes up

Yellow_Snow's picture

It looks like $1220 GC in the next 7-10 days...

tropicthunder's picture

More likley by the end of this week...

Herdee's picture

Gold and Silver on sale again.

Give Me Some Truth's picture

Is there ANY "news" that would be "bullish" for gold or silver? If so, what is this news?

Conversely, is there ANY "news" that is not bullish for fiat-denominated assets?

PrivetHedge's picture

The fail/fall of the petrodollar.

Give Me Some Truth's picture

That's it. Which is why this ain't going to happen if these guys have anything to say about it (and they obviously do have something to say about it.).

Clock Crasher's picture

Buying a years worth of birthday/xmas gifts for my niece and nephews. 

ASE next week this week with a 15 handle.  probably tomorrow I suspect. 

youngman's picture

They have to knock it down before year end...cant show any gains for it...it would look to good if it did...they want it to look like a trash investment...so noone falls for it anymore...they have to keep the faith in their paper...and when this does not work anymore..they will make it illegal to own...

Give Me Some Truth's picture

They damn sure succeeded in their goal to slay all positive sentiment for precious metals. Now, they just smash it periodically to make sure said sentiment doesn't go "zombie" and rise from the dead.

Bemused Observer's picture

For all the rhetoric surrounding bitcoin and other crypto's being the 'new gold', it sure seems as though someone out there is working awfully hard to suppress the real gold's price...I don't see anywhere NEAR the interest in controlling bitcoin's price. Now why IS that?

If gold really WAS irrelevant in today's economy, why are they wasting so much time, effort and money to keep the price from rising? And if bitcoin really IS the 'new gold', why don't they seem to care about the price rising so precipitously?

I won't waste time with theories here...all I can tell you is that I don't have the word 'stupid' tattooed on my forehead. The 'story' they're trying to tell here STINKS, and frankly I'm offended that anyone would even TRY such ham-handed tactics like this early-AM-dumping of massive amounts of paper gold so the markets open significantly lower and freak investors out...how many years have they been doing this? People JOKE about it now, that insomniac gold-seller, everyone KNOWS what this is...and yet they just keep on DOING it, don't even TRY to change out the script a bit, they just don't CARE whether we know or not.

Gold tries to move up by 50 bucks, and they pile on instantly and beat it back down, bitcoin goes up by THOUSANDS and they just stand there going "Wow, look at it go. Kinda scary, huh?" But zero interest in doing anything about that price. The gold price had gone up quietly, with little fanfare, and by just a few dollars, and they acted, large and fast. Bitcoin has been making headlines, people are jumping on like crazy, and the moves have been in the thousands, yet they stand by passively? That makes NO sense whatsoever, and on some level everyone knows this.

Like I said, I'm not wasting time on the possible reasons for this situation. I refuse to be hypnotized into trying to find a cause or explanation for what I'm seeing when I know damned well that what I'm seeing isn't real. And I will continue to buy PM's whenever and wherever I can, because they are just trying way too hard here, way, way too hard.

MrBoompi's picture

IMO we saw their interest in controlling bitcoin's price when they announced a futures market for it.  

Thethingreenline's picture

It is the Chinese. China using worthless fiat $$$ to buy gold on the cheap. China sitting on boatload of fiat $$$ and this is the game. When the gold runs out, then re price the gold. Follow th e money.

TTGL

Give Me Some Truth's picture

Yep. The manipulation has gone from brazen to ... double, triple, quadruple brazen?

When brazen becomes more brazen what is the adjective to describe this? "Brazener?" That's what they are ... But next week they will be more brazen than this week's "brazener." And next month they will be even more brazener than they were this month.

These guys seem to get that they can be as brazen as they want to be and no one (who matters) is going to ever say, "okay. That's enough."

By this point, they could set the silver price below the price of a pack of M&M's and nobody would raise an eyebrow.

 

Bemused Observer's picture

It's just effin' crazy...I guess at some point they'll drop the prices so low I'll end up renting a storage unit. But this shit don't make sense, and I refuse to get anywhere NEAR this bizarre economic contraption with the whirling blades. Perhaps in 30 or so years my children will bury me with all my 'useless relics', and thousands of years in the future someone will stumble across my tomb and figure I must have been a very wealthy and important figure...Lol!

 

Naw, just some poor bastard who had the misfortune to be born at the wrong time in history. I will have them include a note along with the 'relics'...it'll start, "You guys are not gonna believe this, but..."

PrivetHedge's picture

Perhaps the manipulation is tied to the Chinese and Russian gold backed ideas.

crazybob369's picture

Pretty simple really. Gold has about 5,000 years of history as proven money and store of value and is, therefore, a threat to the fiat empire; Bitcoin, not so much. Plus, they have the mechanics in place to fix the price of gold, Bitcoin they are still trying to figure out (although, the CIA was heavily involved with the development of Bitcoin and blockchain technology, so who knows). As soon as Bitcoin becomes mainstream and a threat to the status quo, down it goes. Meanwhile, idiotic, degenerate gamblers like me, jump on the Bitcoin bandwagon, because, well.....we're degenerate gamblers. But, I still view it as short term entertainment at best. Any PM's I may, or may not, have will stay safely at the bottom of Lake Mead for my children/grandchildren to fish out when the time comes. Meanwhile, get out the popcorn and let the Kabuki theatre continue.

GRDguy's picture

Like with Mt. Gox, the financial sociopaths know they can crash bitcoin anytime they desire.

With electronics, they can lie and steal without confrontation.

With individuals holding physical gold and silver, confrontation is required.

Arrest Hillary's picture

A friend sold a Maple last week .... he said the store paid him $10 over spot .... haven't had time to verify .... and the friend is not a gold bug .... but, he knows what people pay him .... San Diego Coin and Bullion .... they're hard asses like most coin  stores .... but, they are a going, respectable store ?

MrBoompi's picture

So a $1.5 billion dump of notional equals a 1% drop in the spot price.  This factor will come in handy to the manipulators.  

Give Me Some Truth's picture

Would nuclear war with North Korea get silver over $18.50? I doubt it. We know that the increased possibility of such a war has pushed it down below $16.

For the record, I am not pushing for nuclear war to increase the value of my silver. But that MIGHT be the only thing that would do it.

 

Give Me Some Truth's picture

Do the setters of the prices of gold and silver think they should knock their price down a good bit right now, allowing for the possibility the monetary metals might "catch a bid" IF the next "debt ceiling/government shutdown" debate resonates with a few people?

The price rise would start from a much lower level and still be safely below the "ceiling" they seem to have set for both.

Actually, if past is prelude (and it is) gold and silver will be pushed down even more once the "debt ceiling" issue is again resolved ... Ominous.

 

everything1's picture

So they beat gold down 1%, that's not much of anything.

Thethingreenline's picture

Y’all on the wrong track. Who benefits most from cheap gold? Those who are buying of course. Who is buying? Now you have your answer. Not like USA can come out and blame the CHICOMS, as their fiat scheme would tumble sooner. China will continue to suppress price with worthless paper, until their is no more physical. Then, we’ll, game over.
This was TRV by.............

TTGL

Txpl9421's picture

Coming to a bitcoin market near you on Monday.

Blue Dog's picture

The gold to silver ratio is now 78.8 to 1. I can buy silver Canadian Maples at SDBullion for $1.29 over spot. I have a lot of silver already but if it drops to $15 I'm going to buy more.

afronaut's picture

Just means Gold has to come down ...Alot

crazybob369's picture

Or, silver has to go up.....Alot. 

afronaut's picture

Look at the trend. Honestly which direction do you think gold is going in?

I hope both get cheaper, i need to accumulate more phiz. Then wait for the inevitable Bull market which may not be for another 20 years or so.

My kids will inherit it, or Ill be buried with it like a fuckin pirate. Who says you cant take it with you. snicker

crazybob369's picture

Quite right. But, don't think you'll have to wait 20 years. Just remember, all the gold that has ever been mined, still exists (almost all). Pretty much all the silver that has ever been mined has been used up. Couple that with the fact that silver is mined primarily as a byproduct of other mining activity and you can see that the long-term supply side of silver is not rosy. Guessing 5 years, max, and this whole clown show gets blown up.

Remember Stein's Law: "If something cannot go on forever, it will stop."

 

Give Me Some Truth's picture

Yes, Karma will arrive. It's taking its time though.

moonstears's picture

You remind me of a story. I know a guy who has the 3rd best copy known of a famous 1940s Marvel comic book. The value is north of $450K. He owns a small business, with a $ backer. He will not sell, as he wishes to have it with him, upon his death, then cremated with it! I asked, Why not give to family? His response is that the fam would just sell and fight over the money. He always says "Who says you cannot take it with you!"

messystateofaffairs's picture

Gold now has a competitor as well as a suppressor. Sorry bugs, don't abandon, just diversify a little.

riskon.then.riskoff's picture

you have to be crazy to be long PRECIOUS METAL...

Al Huxley's picture

My God, I just heard that old jews were taking it out of their clothes and selling it to Charlie Munger!

kivod's picture

Gold has to make a low at the end of december ...... as in the last three years!!!

kivod's picture

Gold has to make a low at the end of december ...... as in the last three years!!!

JPMorgan's picture

As regular as clockwork, I was betting on a replay. :-)

 

Golden Phoenix's picture

'One of these days those crypto guys will be as screwed as gold guys. That'll show 'em we were right. BAHAHA!'.

GRDguy's picture

Exactly. CME, CBOE and with CFTC's blessings, the financial sociopaths are doing their best to make sure most of the 99% will not have a lifeboat when they are needed. 

 

JPMorgan's picture

Low prices is a friend to those of us accumulating.

Bring it on, strong hands await. 

JibjeResearch's picture

Gold? Gold standard of the BRICS and China Central bank?

Bwahahah ahahhaha hahahaha

I am Megatron, you foolll..... get on the cryptos trains... for the sake of your children.. and freedom...

Bwahaha ahhahahaha

0valueleft's picture

In 2007, you would be buying houses in Vegas, in 2011 you would be buying gold and silver. It's Moronatron you fool. Your're a buy indicator of gold and sell indicator of BTC. Doesn't all that laughing get on your mom's nerves?

RedBaron616's picture

Everyone here has their favorite theory that they KNOW who pushed gold down. If you are all so knowledgeable, you should be trading within the range that your favorite bogeyman has set. Over time, you certainly ought to know what they are. Just because you believe that gold and silver should be through the roof doesn't mean traders feel the same way. As long as there are more sellers than buyers, you can expect more of the same. Simple as that.  Perhaps some goldbugs are off chasing Bitcoins.

galant's picture

Econ101: If supply increases faster than demand, price falls.

In the case of Comex, bullion banks have the ability to create unlimited supply on a daily basis, and settle their contracts with equally unlimited cash, not bullion.

They're running a shell game on behalf of the central banks.

Meanwhile, CME et al are setting up the derivative walnut shells to try to take down the bitcoin bugs.

 

Give Me Some Truth's picture

Why do the actions of these "market" players have to remain in the "dark?" Why no transparency ever allowed? Why does EVERYTHING have to be secret?

This goes for the Fed and for all of the players in these metals futures, options and derivative "markets."