Asia Buys Gold After Massive Single Trade Sell Off During Bernanke’s Testimony

Tyler Durden's picture

From GoldCore

Asia Buys Gold After Massive Single Trade Sell Off During Bernanke’s Testimony

Gold’s London AM fix this morning was USD 1,714.50, EUR 1,292.99, and GBP 1,076.14 per ounce.

Yesterday's AM fix was USD 1,721.00, EUR 1,289.81, and GBP 1,079.13 per ounce.

Cross Currency Table – (Bloomberg) 

Gold rose 1.5% ($23.80) on heavy volume in New York yesterday and closed at $1,712.60/oz. Gold rose marginally in Asia and then fell somewhat in European trading which has gold now trading at $1,713.41/oz.

Jitters about Iran and the Middle East are keeping oil near multi month record highs which is also gold supportive.

Wednesday’s drop of 5% means that gold is set for its worst weekly performance since December which is encouraging value buyers.

Gold was 1.5% lower in February which was negative from a technical viewpoint however gold remains 9.4% higher in 2012. Silver was over 4% higher in February despite Wednesdays falls and built on the gains seen in February.

Silver in Dollars – YTD (Bloomberg)

Wednesday’s sell off is being attributed to one massive sell trade of 31 tonnes on the Chicago Mercantile Exchange during Bernanke’s speech. There are rumours of a large US fund selling and also that the selling may have been by JP Morgan – rumoured to be acting on behalf of an Asian fund.

Who sold off and why is less important than the fundamentals of the gold market.

Absolutely nothing has changed regarding the fundamentals of gold which remain as sound as ever with broad based demand from store of wealth buyers, institutions and central banks internationally and especially in Asia. Good volumes have been seen on the Shanghai Gold Exchange in recent days.

Gold in Dollars YTD – (Bloomberg)

In India, lowest gold prices in a month saw strong physical bullion demand and physical buyers hunting for gold bargains to meet the wedding season demand.

India remains the world’s largest buyer of the yellow metal (900 tonnes/year) but China is expected to outpace them this year according the World Gold Council.

ETF holdings gained 238,674 ounces to a record high of 70.76 million ounces, showing that institutions and investors remain keen on gold. Also, options data has not changed since Wednesday’s price falls.

The gold-platinum spread dropped to just about $15/oz its lowest since mid-September, with supply disruption in jewellery and autocatalysts production, platinum has risen 22% so far this year, versus gold's gain of 10 percent.

Market watchers focus on Impala Platinum, the world's second-largest platinum producer, which has suffered 100,000 ounces of lost production in a six-week-long strike at its key Rustenburg mine. The company said it would restart production on the 5th of March.  

For breaking news and commentary on financial markets and gold, follow us on Twitter.

(Bloomberg) -- UBS Says Gold Flows to India Yesterday Strongest Since SeptemberUBS AG said its physical gold flows to India yesterday were about three times the average and the strongest volume since late September.

“A cheaper gold price on Thursday elicited a hard-to-miss response from physical players across various regions,” Edel Tully, an analyst at UBS, wrote today in a report. “Yet, it will probably take a few more days for physical demand to really come in with full force.”

Silver is trading at $35.09/oz, €26.54/oz and £22.12/oz. 

Platinum is trading at $1,700.50/oz, palladium at $710.00/oz and rhodium at $1,475/oz. 


Gold inches up as buyers trickle back after selloff

(The Street)
Gold Prices Recover After Wednesday's Bloodbath

(Wall Street Journal)
US Mint's Silver, Gold Coin Sales Tumble‎

(Financial Times)
Brazil declares new 'currency war' against foreign devaluations

(Wall Street Journal)
Bernanke Faces Lawmakers Again

(The Telegraph)
Gold price will plunge below $1000 an ounce, bears claim‎

(Zero Hedge)
John Taylor Warns Of A "Highly Disastrous, Totally Uncontrollable Inflationary Conflagration"

(Zero Hedge)
Next Leg Of The Ponzi Revealed - Foreign Central Banks To Begin Buying US Stocks Outright Starting Today

What central banks provide, oil markets take away

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GetZeeGold's picture's outta the bag.




maxmad's picture

So they weren't buying Bernanke's story?  huh....

trav7777's picture

they were happy to blowtorch silverbugz, tho

GetZeeGold's picture



At least he's back to normal.......we were getting worried for a moment there.



resurger's picture

just about another kilo with that flash crash

tmosley's picture

Trav got blowtorched in the divorce, so he likes to point out every tiny paper "loss" experienced by anyone else.

Dumpster Fire's picture

Hey that shit isn't funny :(

tmosley's picture

No, it isn't.  The fact that Trav is a sociopath who has driven everyone and everything important away is tragic.  But he has externalized his character flaws.

He needs to understand that the problem isn't with every single other person he has ever met, it is with HIM.

This is a lesson he refuses to learn.  He would rather murder the world than admit being wrong even once.

fightthepower's picture

Great analysis.  You have to think that someone that makes their mission in life to Troll a message board has some serious issues.  The fact that he has driven away important people in his life sheds light on his character. 

trav7777's picture

the "fact"???

ROTFL...that you would believe a single word cliff says sheds more light on the idiocy of you both than anything I could say.

trav7777's picture

So sayeth the guy who wants to hasten an industrial panic so he can be a petty tyrant?  ROTFL

Cliff, you are TOO MUCH. 

When was your divorce, btw?

Richard Head's picture

Robo-faker also likes to use "blowtorch."  

GetZeeGold's picture



They were blinded by the shiney Ron was holding. They didn't hear a word Bernanke said after that.


They don't have the shiney protectors built into their eyes like us Europeans and Westerners do. It's kinda of a big chink in their armor.


If I was working for ESPN......I'd be pretty screwed right about now.




Pegasus Muse's picture

"Wednesday’s sell off is being attributed to one massive sell trade of 31 tonnes on the Chicago Mercantile Exchange during Bernanke’s speech. There are rumours of a large US fund selling and also that the selling may have been by JP Morgan – rumoured to be acting on behalf of an Asian fund."

What for-profit fund would authorize a sale of 1 million oz equivalent of gold in a single one trade? None that wants to stay in business. The attack on the price of gold was a crime perpetrated by the Federal Reserve, likely aided and abetted by some its foreign central gangster bankster cronies. It's a worldwide Central Bankster Fiat Money Printing Organized Crime Syndicate. They fear the Price of Gold. Gold is the club with the power to beat them to death.  Couldn't happen to a more deserving den of thieves. 

Listen to Jim Sinclair's latest on KWN:

Red Heeler's picture

"Gold will be the last man standing." - Jim Sinclair

Deo vindice's picture

Just thinking out loud here, but it does seem as if the silver smackdown was what they really wanted to do. I know it in recent history it is more volatile pricewise by nature than gold, but still silver is the commodity that the bankers do seem to fear. It is the canary in the mine on the health of the fiat currencies.

gmrpeabody's picture

Perhaps..., but I believe they dearly wanted to paint that end of month/week candle red. And to be able to do that while the Bernanke is speaking... priceless.

Very Godfatherish, don't you think?

Chaffinch's picture

Gold was the target. The drop in silver was 'collateral damage'. The gold:silver ratio is doping, below 50 now and heading towards 32, and lower. Silver held up re-assuringly well under such an onslaught.

trav7777's picture

huh?  Silver was down more than gold was and is again today.

You silverbugz must enjoy getting blowtorched like that.

All the breathless silverbugz rushed in like idiots once "Turd" said silver to DA MOONZ or $42 or whatever and the next day it simply got smashed.  Silverbugz are huge fades, the classic "dumb money"

Chaffinch's picture

I'm long gold and silver. When the prices get monkey-hammered down silver normally drops more, in percentage terms, and when prices rise silver normally gains more than gold, in percentage terms. Year to date, gold is up quite well, silver is up all that and more so. After an increase from $26 to $37 a pullback wasn't much of a surprise. Having 2 stacks, one to hold until TSHTF and one to trade - scaling in when prices drop - and to take some profits from when prices rise - seems to work quite well. Just keep scaling in, and scaling out...

Strider52's picture

Well, I'm no expert, but it seems to me like *they* were letting the POG rise gradually, to entice buyers, then MonkeyHammered the F out of it, to cause many traders to lose a shirt or two, to discourage players from getting into gold.

jekyll island's picture

The carpet bombing of gold market was done to prevent the sheeple from waking up and starting stage 3 of the bull market.  This is going to happen several times in the next year or two.  Nothing wrong with picking up some extra phys on discount.  Thank you brother Ben.

trav7777's picture

there's no limit to idiotic conspiracy theories from you people, is there?

BigJim's picture

Have you heard the one about peak oil?

leon6600's picture

my classmate's mother-in-law makes $64/hr on the computer. She has been without a job for 5 months but last month her pay check was $17702 just working on the computer for a few hours. Go to this web site and read more ....

Bansters-in-my- feces's picture


Spam on ZeroHedge....too fucking much...!!


DosZap's picture

Spam on ZeroHedge....too fucking much...!!

Wait and see what happens on your home computer if you open a direct link to this shite.

Like a Mother in Law comes for a short visit, but won't leave

resurger's picture

it would be nice to see how will they cover their short positions when gold at 1,800!


Deo vindice's picture

By m-a-n-i-p-u-l-a-t-i-o-n. Like they always have.

Eclipse89's picture

Smart money buying it, idiot money selling it.

Snidley Whipsnae's picture

Eclipse89... I have read lots of speculative comments about the sell off. Here is yet another...

"Did Sheldon Adelson (Newt's Billionaire Friend) Smash Down The Gold Price On The 29th?"

"A single seller drove price down as Bernanke testified"

...and here is the link to GATA where the story originated (I assume), with full text:


LasVegasDave's picture

Let's think about this one


1.  Rich

2. Jew

Yep, it probably was him.  anyway, just go with it

JW n FL's picture



How dare those Goy Slaves say such things..

Dont they know their place in this World?

Tell'em Dave!

Tell'em how it is!


BLOTTO's picture

Yup - somone is making good moves.

Deep down inside - they all are buying Gold/Silver up behind closed doors.

LongSoupLine's picture

A signature Blythe weak-hand takedown.

disabledvet's picture

so JP Morgan was the buyer then? who cares? "wake me up when Singapore ANNOUNCES it has been buying all the Silver it can get its hands on and declares its currency backed by said metal." then Planet Earth will finally have "a bank we can believe in."

slewie the pi-rat's picture


nada on the gold-platinum spread trades!

not one word from anyone!

this spread compresses by ~~$90 in a few daze as the GSR heads south thru 50:1 and nobody notices except slewie?

what a fuking joke!

ffart's picture

Hey I've been on that trade for a month now. Lookin' good so far.

Snidley Whipsnae's picture

Slewie... I have made a virtual fortune on Farmville. Recently virtual oil was discovered under my 1,600 acres of virtual wheat... Then my virtual attorney told me that a virtual oil company owned the oil/mineral rights of my virtual farm... Now I am fighting the virtual oil company in a virtual court battle... I think I need a new virtual attorney.

I have no time to trade Real Stuff. :) 


JW n FL's picture


and the difference between Framville and NYSE is?

WmMcK's picture

PT may trade at parity to AU again real soon. There's another 20% "potential" after that. Many notice in silence.

Dr. Gonzo's picture

I noticed slewie. $7 away from parity. There is a distinct possibility that platinum will blow past gold it gold keeps standing still. No one seems to care though. It's such a tiny market compared to gold so if there's anymore problems with mine strikes they won't be able to stop the price move and I don't think the PPT cares about platinum that much anyway. They got their hands full with gold and silver. $2500 platinum is not unthinkable. 

trav7777's picture


Did you miss like the DOZEN times I told people to put on this trade and said when I DID SO myself a couple months ago?

Mercury's picture

Even if the Fed isn't printing today, Europe is printing like crazy and the US will have to play catch-up soon - or else (just for starters) all those overseas S&P 500 earnings start to wilt.

kito's picture

but wait....i thought ben was always printing??? ......not

ffart's picture

Just because some other group of banksters are printing doesn't mean Ben isn't printing, constantly at all hours of the day. Everybody's always printing. It's a P A R T Y for the central banksters and they spiked the punchbowl with absynthe and LSD. Stocks to the moon! Welfare checks for everyone! And there will be no consequences to any of this. And any time their legitimacy is questioned they threaten to unleash the "deflation", as if it would even be negative for the real economy!

El Hosel's picture

Look at the Market rally from OCT,  there will be no QE3 because it already happened.

Gold got smack down $87 dollars as Europe injected 870 billion and Bernanke lobbied for negative rates....   Quantify that.

HungrySeagull's picture

What is the capital gains tax on 31 tons of gold?

Also delivery needs to be by two 18 wheelers. It's gonna cost ya.

Pretty cute I must say, timing Gold sales or buys to the B-Man speeches.

Snidley Whipsnae's picture


"Also delivery needs to be by two 18 wheelers. It's gonna cost ya."


Nah, one email regarding failure to deliver and wire deposit to bank... no REAL gold involved. Cash settlement.