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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jmack's picture

Testing 1265... lod at 1263, then a decent pop back above 1265,  testing it again now, see if it holds or if it sells off into the close... close of equities.

pebblewriter's picture

It's pretty straightforward, and has everything to do with the USD.  DXY broke down from a 2-month old channel on Nov 14 and has continued to settle lower, following a well-defined falling channel ever since -- until today.

Today, DXY broke out of that channel and above both the 10-day and 100-day moving average.  All is not lost for gold, though a close below the 200-day moving average and a key trend line would indeed be bearish.

bluskyes's picture

who doesn't like a sale?

Iconoclast421's picture

Thank goodness for my 22.50 GDX puts. No I'm not a gold bear, I was trying to hedge with the puts but they ended up paying out bigtime.

afronaut's picture

The whole Gold/ BC arguement reminds me of the Sugar market when saccharin came out. Remember the news? Sugar isnt needed anymore. Saccharin is 10,000 times sweeter so less storage needed. Sugar hit 2 1/2 Cents a lb. Nobody would touch it. 

east of eden's picture

Unless and until the LAW is enforced concerning naked short sales of paper gold, by NY J00s and the CME, then you can simply not depend on it holding it's value, or even keeping pace with inflation.

What needs to happen is that every got damned person who has ever had anything to do with selling naked shorts, needs to be tried and executed. Then, we might get price discovery.

Snaffew's picture

I would just love to see the Chinese, Russian and Indian buyers turn on the spigots and send these wall st derivtive trading jews to the poor house.  it would be fucking Karma. 

Snaffew's picture

maybe tonight the tables will turn...oy fucking vey!

east of eden's picture

OK. So the collapse in price has come earlier than I expected, but then the annual peak occured in September, nearly 7 months early.

So were is the red-neck fuck wad that argued with me about how great gold was. The US dollar continues it's trip down the toilet but gold continues to be sold in naked short positions because the fucking j00s want to buy cheap gold.

east of eden's picture

You have to ask yourself if a species, whose principal advantages are fucking and fighting, even deserve to exist.

Snaffew's picture

7 point drop in the S&P and vxx is red...go figure.  if it was a 7 point rise, vxx would be down well over $1.3

TheInfoman's picture

I spoke with a WSJ Hong Kong Bureau editor aboard a recent flight.  I asked him about gold.  He said "gold is a hedge against inflation.  There's not enough inflation, so the price stays flat."  Could it be that simple?

Snaffew's picture

the stock market is a prime example of inflation...home prices are a prime example of inflation....add these to stagnant wages and one could easily assume hyperinflation.

KHT's picture

Very expected. Time to stake a small claim in unleveraged and build some positions. NICE!!!

wattie's picture

Join the Global Class action fightback against gold/silver manipulation!

Investors from 18 countries around the world have signed up so far...will you?

Together we can end this.