Biggest Week For Gold In 3 Months

Tyler Durden's picture

While Silver had a better week than Gold (+5.4% vs 4.3%), Gold managed its biggest gain in three months as the Fed's QE-ness seemed to separate the precious metals from other asset classes. Oil underperformed relative to the USD's weakness (-2% on the week in DXY) managing only a 1.3% gain (and ending below $100). Silver and Gold have no managed four weeks in a row of gains as the latter has more than retraced half of the all-time high sell-off range. With 5 minutes to go, NYSE volume was -32% from yesterday, by the close of the cash markets it was only down 2.5% leaving the week -10% from last week (so 32% of the day's NYSE volume was done in the last 1.3% of the day). In credit, HYG underperformed stocks, HY credit stayed synced with stocks and IG outperformed (touching 100bps as we closed). Treasuries ended the day (and week) at their low yields with 5s to 10s all lower by around 14bps on the week and 30Y rallying to -4bps on the week by the close. FX markets were a little odd as EURUSD squeezed higher and higher all day (largely ignored until a late ramp) by stocks as JPY's strength kept EURJPY (carry driver) relatively flat. EURUSD ended at 1.3227 (up around 300pips on the week) at its highest in 7 weeks as CFTC net shorts rose once again to new record highs at 171k. Broadly speaking risk assets and ES (the e-mini S&P 500 futures contract) have been highly correlated all week. This afternoon saw CONTEXT pull ES higher (mainly on EURJPY strength, and Oil stability versus TSY/Curve compression) but after the cash market close, ES limped back down to its VWAP to end its worst-performing week of the year (+0.15%) though not down (which we are sure would scare investors away) as stocks handily underperformed credit on the week as high beta starts to unwind.


Weekly change in the major economically sensitive commodities.

Intraday changes on the week in commodities - Silver putting in an incredible rise of more than 7% off its lows on Wednesday.


VWAP played an important part in today's ES price action in stocks (as it always tends to) but the reversion and rejection has the smell of institutional sell orders need to grind the market up to sell into and each time we touched VWAP, average trade size increased and selling immediately occurred. The afternoon surge seemed more about catching up to EURJPY (more EUR) strength but once we hit unchanged, sellers came back in size once again.


Financials managed to surge up in the last hour to save their week (ending the week practically unch - though some of the majors looked very different and CDS has started to widen). Materials outperformed (QE?) and Staples underperformed on the week.

Charts: Bloomberg and Capital Context

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traderjoe's picture

Platinum - Bitchez.

whatsinaname's picture

Has WTI been anchored to 100 ?

RBOB finally makes its move..

Anticipating Iran action ?

Dr. Richard Head's picture

I told all ya'll the bottom on silver was in as soon as I sold off a portion of it to finish my bunker....I mean basement.  Son of a Bernanke. I will let everyone know when I buy again, as the price will drop precipitously.

DoChenRollingBearing's picture

Buy and hold them all.  If you have silver in a SHTF, you can spend it.  Gold you give to your children or (better) your grandchildren.  Platinum is for optimists!  There, you're covered!

tocointhephrase's picture

Silver & Gold (physical only) B17cH3Z

Sokhmate's picture

"B17cH3Z" is our pass code from now on.

Raging Debate's picture

Cool. Transmit it out! Earth to aliens, "need some dough and oh yeah, don't forget our Corporate slogan!"

mofreedom's picture

Every increaee in the metals brings me pain, a pain that only says my county will suffer.  My metals will go to those that need them.

Harbanger's picture

I'm with you Bro.  Too many people are willing to abandon her for temporary personal gain.  Given the choice, would we pledge Our Lives, Our PM's, and Our Sacred Honor to save our beloved Republic?  Not most, but I know many of us would.

Reese Bobby's picture

File under: "Peeing on a Forest Fire"

tocointhephrase's picture

Yes indeedy Fuu 51LV32 is money

Silver Bug's picture

Gold has been on fire, we havn't seen anything yet!

DoChenRollingBearing's picture


The best, indeed, is yet to come.

s2man's picture

I won't sell gold at $55,000.  That just means the USD is worth less than toilet paper.  Better to hang on and have a stake in what ever currency comes next.

Though, I may trade for some nice farm land...

Transformer's picture

Gold at $55,000, what a joke.  If something like that were to ever happen, we wouldn't be measuring the price of gold in dollars.  It would be something like, how many congressman can you buy for an ounce.

DosZap's picture


Though, I may trade for some nice farm land...

 Sadly, you will never be allowed to retain it.They will confiscate that also, or raise the taxes to the point you will lose it.

Unless we disappear(haul Arse,out before the state completely takes over),all will be lost for enjoying the fruits of your RISKS that will have paid off in a huge way.

rayduh4life's picture

More likely is they'll take your water.  Ask those in the Klamath project about it.  The fight here in the other Washington is about to start. 

Lots of ways to screw you out of that farm land.

DosZap's picture


Mi amigo..................

Of course your right, only issue is it will be illegal to own, and will be taxed at 90% if you try and sell it.

Or you will be forced to turn it in for Fed valuation of $42.20.

Funny how the Bankstas and Huge Funds can(are allowed) make killings in the market, but regular Joes, cannot invest in the object of THEIR choice and reap the rewards,you were born DOWN, and we plan to KEEP you there..................

 No, your gold are BELONG to us.

The entire thought makes me want to  vomit blood.

larynx's picture

Dont worry about that now. If the goverment really starts to prohibit gold, take it and run.

Other Countries will be more than glad to take it.

DosZap's picture


 take it and run.

Timing is everything, and getting out will be the catch.It's enough to give you GERD.

HedgeAccordingly's picture

unfortunately ES setting up for a rally? closing print

James_Cole's picture

What a month in platinum, my father made a huge platinum buy at the beginning of the month, bought out our city's bullion dealer. We all thought it was a crazy idea......

non_anon's picture

rocket to the moon!

DoChenRollingBearing's picture

"to the moon Alice"

- unknown


"All else will be left behind when the Gold Mothership takes off."

- ZH-er "Gordon Gekko"

s2man's picture

"to the moon Alice"

Credit the big-band leader, actor and writer of Moonlight Serenade, his theme song.

Edit: Gawd, I can't believe the trivia shit I keep in my head. Yet I don't know my kids' birthdays...

Parabolic's picture

At least Ron Paul wants to send politicians to the moon

fuu's picture

That's change I could believe in!

Transformer's picture

18,000 residents.  I guess he hasn't heard of the NASA moon hoax.

A Nanny Moose's picture

Newt wants to make the moon a state.

akak's picture

If that chickenhawk Pillsbury Doughboy (and his ego) gets any larger, HE is going to be a state!

Jam Akin's picture

Never thought someone could be an asshole and a dickhead simultaneously until recently!


prole's picture

He may be laden with copious amounts of adipose tissue currently, but he was unburdened with any sense of duty to his country* when he was himself a young man. quite adroit the Noot when it came to  dodging the draft

during that unpleasantness in Vietnam. (Mega) Dittos the Artful Dodger himself Romnel, as well as the rest of the warmongers

all showed excellent combat technique of "stay the Hell away from the battlefield" and a million miles away from a uniform.

except of course the sublime Dr. Paul, who served when drafted. Guardasil Rick also served full disclosure.

*Very open to debate exactly which country that is

SeverinSlade's picture

So how long until the CME hikes margins?  Didn't they just lower them on USDs?

Spider's picture

Aren't USD a risk-free asset?  I mean we've been using them since the dawn of time to trade for goods, services, and to preserve purchasing power.  Oh wait that's gold...

dime2962's picture

Silver and Gold....Silver and Gold...

ReactionToClosedMinds's picture

the more folks on food stamps .. the more demand for gold.   think about it ....... that's correlation ....


thank you Newt Gingrich for highlighting this relationship

Bay of Pigs's picture

Food stamps. This year, more than 46 million (15% of all Americans) will get food stamps. That's 45% higher than when Obama took office, and twice as high as the average for the previous 40 years.

Bay of Pigs's picture

Oh, and Newt can get fucked. He's a lying POS himself. 

akak's picture

Except the good doctor.

(You know who I mean, "He Who Shall Not Be Named" by the corporate-controlled media --- and the winner of every possible poll except those at the ballot box/Diebold machine.)

Long-John-Silver's picture

I stand corrected on that single point.

trav7777's picture

uh, what fuckin real polls has he won?  None.

Transformer's picture

You tell 'em Trav.  Even though he might be up in polls,   Or even if in first place in the polls like he was in Iowa going into election day, he just doesn't do well when people actually vote.  I suppose it's that thing where they think he can't win, maybe.  On the exit polls, people say they voted for him, but they must be lying, cause he hasn't done any better than 3rd place yet.  I'm actually rather disappointed in his performance.

Money never sleeps's picture

Kyle Bass on when the shit is going to hit the fan:

Irene's picture

Thanks for the post.  Terrific interview.  I reposted on it on tfmetals with a hat tip.