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Gold Flash
Spot Gold just fell out of bed with a small jolt taking it back to unch from early Friday trading. The move does look eerily similar to last night's 'flash crash' style drop though recovery from the current move is less ebullient.
Chart courtesy of Bloomberg
The main driver of the move seems to be chatter about Japan not following the competitive devaluation path of the SNB anytime soon (in favor of a package of measures related more to monetary policies) though anything goes at this point (and especially interesting given our earlier post regarding the topic).
Was it a European bank selling more gold to fund itself? Hedge fund liquidation? Hillebrand needing some funding?
Silver also went bidless but has recovered most of its drop.
Chart courtesy of Bloomberg
Update: looking around FX, credit, rates, and equity futures - nothing else seems excited by this at all...WTI dropped a few cents but that was it.
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pimps knows how to calculate the details. no algos or machines required.
Been watching the tape since this happened. There is steady and sustained selling pressure on higher then normal volume for the last few hours. Something is up behind the scenes....
Buy the dip!
This was a FOREX market induced event. Not a COMEX. COmpare the charts of the aftermath of the flash. FOREX went back up and then made a lower low. COMEX did not.
Gold is bull flagging on the 30 min-
Holding inside the channel--so far
jj:
Does technical analysis work on the manipulated gong show that is gold? Is the avatar you have on zerohedge used somewhere else?
Patented Swine Slav-
it's showing buying coming in and looks picture perfect "at the moment"
there's a lot of currency fear after the swissy action-
not many places to hide in paper-is the blowback from that--imo-
fear will out trump anything they throw at us now-
would like to see a bottom conformation at 1650 or so-
we might get it-
"I guess the $2000 hill is just to high to climb", haha.
By one-sided trades, do those include the ones that have exploded exponentially over the last decade, ie. gold and silver?
hmm, wonder if the discount will last until the coin shop opens tomorrow...
Coin Shops will just increase their premium
Dow futures up $100. Maybe Obama's job plan looks positive for the
market or maybe the fact that Obama wants to spend $300 billion to
boost jobs. The market always liked stimulus, but then so did gold.
Who ever said gold and would not be a violent knock down drag out bull market?
It is. Get used to it pussy's.
Welp, looking at the charts, this move is nothing. Bonus: I'm getting some silver eagles delivered tomorrow. Joy. True joy, I love it, two big boxes. This dip may be the perfect time to pick up some more gold.
Gnight folks. Looking forward to reading the news on German court ruling, should be fun!
Gold seems to correct at round numbers. When silver is underperforming look out. That means spec fever is running out. There was a big fake out on slv last friday, these fake outs lead to the best trades. I wont deny the bull market in gold but spec fever is overdone and the equity market appears ready to bounce. The goddamned dollar is bouncing now too. We are in bizarro world folks.
You wont deny the bullmarket in gold? Well thanks, that makes me feel alot better. Now at least I know we wont have to debate the rotundity of the earth...
Very nice. I was trying to have it both ways and you called me on it. I am short gold with a stop above the recent highs. I dont care how high it goes.
stocks up/gold and dollar down. both 'safe havens' moving together at the moment
Maybe the ruling of the German Constitutional Court, due in a few hours, has leaked, and it is unfavorable for gold, at least in the short run.
Exactly what I thought. S&P downgrade was leaked . . .
There is an obvious trading range going on in equities. A break above I cant see happening but I will go long witha stop as tight as the best pussy and a break below I will sell with a stop as tight as the best pussy. Thats all I can figure...As for gold, parabola is possible. It did go exponential back in the early eighties. I just dont see it in todays crooked asss market.
Actually Gold should be bid very soon on Germany saying to the rest of Europe 'F*ck you!' next few hrs. No wonder the loons at the SNB are on a indefinite liquidity pump
Just watch dollars. They are reay to skyrocket. How will this work for gold?
Obious alert************
Buy dollars with a stop below todays low and let it run bitches.
I love to see obvious resistance at certain moving averages because shorts think they wont be taken out but once they are, KABOOM!!!!!
umm, it's cause you guys here are all morons. Dude if I lived in Europe I would buy gold, but america? Get the fuck out of here tyler. You want guns and ammo. Or food. Gold will never go parabolic unless that shit follows. END OF STORY
I'm always a rather mild mannered kind of guy but I'm sick of those cock suckers fucking with me and my hard earned stacks. I've had it up to here (raising my hand as high as I can reach) and if could have at em for just an hour in my basement I think I'd feel back to my old self again. Let's face it, this is getting old, fast.
A Large amount of gold (more than all but 4 central banks) is held by leveraged players. And a lot of these guys are bleeding from the ears these days. THIS does not have to be manipulation, It could be margin related sales.
Put another way: just because the market went against the dictates of your religion, does Not always mean it was manipulation.
Guys, relax and let the market come to you. Now buy dollars and shut the hell up.
Resistance at 76 and people think it wont break it but it will. Dont fight the good ol american dollar. A months long trading range is being broken, cover your shorts and go long dont fight it.
Of course it stopped just below resistance this is a trick. It will explode higher just to fuck you up. This is a new trick used by traders. adapt or be sapped.
The Swiss propped up the Euro out of the goddness of their hearts, there is simply no other explanation coming from the nation of the most well-managed fiat currency in history.
Yes, because the money-changers are noted for their good hearts.
US treasury and charts analysis pointing to some bounce and then a severe fall
http://capital3x.com/?p=832
Crisis over, no gold needed anymore?
You said there was never a crisis, and that shit was boring, you liar.
Here's my trick. If it goes up, just buy a little. If it goes down, buy a little more. If it goes down a lot, buy a lot more. See, if you are a loser like me, you can learn to do your own market manipulation. Buy a little and trick the market into going down, then boom, hit it hard with your remaining dry powder. Now this is the kind of analysis that's hard to find anywhere else.
Guys.. why the hell are some of you getting so panicked
about a $50-$70-ish sell off at $1,920?? Jesus.H.Christ... it hit $1,920... and it's still mid-$1,800's FFS!!
How is this even remotely surprising to anyone, let alone be anything 'new' or different from what we've all seen on numerous occasions previously??
If you're invested in PM's (especially physical) then one would've assumed that you'd done your homework on this market. You'd know these fluctuations are commonplace; You'd know what's largely driving them behind the scenes; You know that investment (hedging, insurance, whatever) in PM's is a long-term position/view and not a 'trading position' per say; you'd know that any day-to-day move of less than 6%-7% isn't worth stressing about (until it's 3 x days in row of course!) because your view of the global macro picture that got you into PM's to begin with hasn't a changed one iota.
Chill the hell out and do what ZH always tells you to do right about now.... back yourself, grow a pair and BTFD!!!
I was glued to the screen when it happened. Based on price action, it appeared to be an algo originating in the futures. It seemed a little ridiculous that gold would be getting crushed when 'unlimited amounts' of currency purchases were just announced, which makes me think it was a kneejerk dollar bid triggered move. What I find particularly interesting is the Libyan truck that was carrying all the gold. Who says gold's not money? But might be a reason for TPTB to try to keep gold price suppressed...
That was referring to last night's move. Tonight's price action does look less algo-like and more like a real seller. However, every time they try to jam it lower, a pretty healthy bid comes in. It feels like good price action for the long side. We really don't want it to go straight up...that leads to things like margin hikes.
Looks like a huge double top for gold. We'll need some sideways/consolidation work to digest the recent big moves.
UPDATE 1-German court gives MPs bigger say in euro bailoutsWed Sep 7, 2011 4:52am EDT
* Top court gives parliament bigger say in bailouts
* Constitutional court rejects lawsuits by eurosceptics
* But says ruling "no blank cheque" for future aid (Adds quotes and details)
By Annika Breidthardt
KARLSRUHE, Germany, Sept 7 (Reuters) - Germany's highest court said on Wednesday that parliament must have a bigger say in euro zone rescue packages, in a landmark ruling that may make it more difficult for Europe to respond swiftly in delivering aid to crisis-hit member states.
The German Constitutional Court rejected a series of lawsuits filed by eurosceptics aimed at blocking the participation of Europe's biggest economy in bailout packages for Greece and other euro zone countries, as had been expected.
But it said the government must seek the approval of parliament's budget committee before granting aid and spelled out that the ruling should not be misinterpreted as a "blank cheque" for future rescue packages.
"The constitutional complaint has been rejected," said the president of the court, Andreas Vosskuhle, in a ruling closely watched by policymakers and investors because of its impact on the decision-making process in the 17-nation currency bloc.
"This was a very tight decision. But it should not be mistakenly interpreted as a constitutional blank cheque authorising further rescue measures," the red-robed judge told the plaintiffs, government officials and members of parliament in the courtroom in Karlsruhe.
Greece, Portugal and Ireland have already received aid from Europe and the International Monetary Fund while Italy -- the third largest economy in the euro zone -- looks increasingly vulnerable as it struggles to implement a savings programme.
The prospect of having urgent rescue decisions bogged down in legislation in Germany -- and potentially other euro zone parliaments, if more states follow suit -- will not please policymakers trying to streamline that process.
Chancellor Angela Merkel already faces a revolt in the Bundestag (lower house of parliament) over European leaders' decision in July to grant new powers and extra funds to the current bailout fund -- the European Financial Stability Facility (EFSF) -- which goes to a vote on Sept. 29.
Parliament also has to ratify by the end of the year the fund which will replace the EFSF from mid-2013 -- the European Stability Mechanism (ESM) -- and the court ruling is likely to influence how it allocates rescue funds in future too.
http://www.reuters.com/article/2011/09/07/eurozone-germany-court-idUSL5E7K70Q920110907
6 packets of ciggys or an oz of silver? Hmmm guess its a no brainer really.
The DesertRat has fled the trap, and he's got all the Swiss cheese he could stuff into his fleet of furry four wheeled camels!
http://www.dailymail.co.uk/news/article-2034192/Libya-gaddafi-son-Saif-f... ...ignore the "tyrant and looted gold b.s., but do take note that as usual, nothing is as it seems(or is reported as such in the MSM!)
Acquiring that convoy of non-spam shiny metal goods accompanying G-Daff on his breakout was the last best hope that the serial bankruptsters and their ZATO tin soldiers had to pull this thing out of the fire...
Better minds than I will be able to correlate the Swiss Dump of yesterday with the successful flight of the wily one, but believe it, the dots do connect...even Berlusconi's final death throes are part of GDaffs' last laugh. And just wait till they try to reactivate the wells!
Nearest deep water port to Burkina Faso?!? Could that ship carrying Chavez's London spam shipment make a stopover on the way back to Caracas...Accompanied by Chinese carriers?
Durruti Column snitchez!
After gold's 3% move Friday, still being smashed back down, per analyst James McShirley's thesis. > 2% moves up in gold price trigger a cartel beat down, more and more done automatically by algos. When gold stars making 3% moves up, without a response, you'll know they are losing control.
Still above my last buy at $1833.
Restful slumber uninterrupted.
What's in your wallet Timmay?
Flashcrashes...HFT´s...one in the same...What was it a year ago for the first flash crash...people saw that and said..." I want one"..so this last year they all figured out how to do it...they being the big banks..and countries too like China...the computers cost a bit much for a pyjamas investor I think...but if you got a 12 billion bailout from AIG..you can afford two or three....to me these crashes down are a desperate move to get physical.......the end is near and the banksters want as much gold and silver as they can get...the real stuff...there is a lot of crap going on behind the scenes I think....a lot
Why no mention of margin hikes in Asia Zero Hedge?...
http://www.commodityonline.com/news/Chinas-SGE-to-raise-gold-silver-marg...
Keynesian and free market economics have always been battling out with each other..clearly it appears Gold is probably better off as jewellery than for speculation if we have to be concerned about the volatility of its price.