Gold Sliding On Central Banker Script - First India Cuts Rates, Next Tries To Talk Down Gold

Tyler Durden's picture

Gold has moved rather rapidly in the past few minutes and many are scrathcing their heads just why this is happening?

The reason is simple: central planning script 101, page 1. As we noted earlier, the RBI did a very surprising overnight repo rate cut from 8.5% to 8.0%, the first in three years, and in other words it has just joined the global central planning cartel in attempting to stimulate the economy nominally, even as inflationary packets still abound across the land (see China), by reliquidifying. Yet what does that mean from a modern monetarist standpoint: why crush gold as an alterantive to the local paper currency of course.  Sure enough:

  • INDIA ECONOMY SECRETARY: EXPECT TO LOWER GOLD CONSUMPTION IN ECONOMY - DJ

And there you have it: because the last thing India needs is a surge in gold buying now that it too has joined the global reliquification parade. That said, we are curious in what parallel universe will liquidity easing result in less demand for hard assets. Ask the algos who are selling on nothing but headlines, yet oddly ignoring the fact that India and now Austrialia appear set to enter the race to CTRL-P's bottom.

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engineertheeconomy's picture

Central Bankers worst nightmare is going to come true soon, your local bullion dealer won't be able to keep GOLD on his shelves because of demand. Right now the central bankers are melting down their large bars to pour small bars and coins to keep the shelves in stock. Once the shelves are emptied, GOLD will skyrocket and the EASILY PRINTABLE PAPER GLD will either keep up or fall to ZERO where it belongs

prole's picture

Or they'll smack the price of gold back down to 1200, for starters. They can do whatever they want. How does anyone know what they are GOING to do? I don't know. Does anyone here know? (those who do know, aren't talking)

Troll Magnet's picture

i don't believe gold will fall to the $1,200 range because chinese and others will be all too happy to load up their trucks if/when gold falls to $1,500-$1,520.  just my wild guess.  personally, i'm looking to load up on more silver right now.  just because.

DeltaCharlie's picture

Someone didn't update the text in that document? Didn't they just capitulated on increase import tax on gold after a jewelers' strike a few weeks ago?

Should have known governments lie through their teeth. 

q99x2's picture

Enter to Win. Dinner with Barak.

Gloom's not coming in fast enough here. I'm off to Alex Jones and the USGS.

Theta_Burn's picture

India rates @ 8%...

In todays world, they look better than most

 

Bam_Man's picture

Not so good when "reported" inflation is running at 9.1% and the actual rate is much higher.

prole's picture

In America, your gold bug is rare, most Sheople are flag waving, offspring sacrificing (to military industrial complex) paper money believing in fembots.

In India, the humble and the average, if they have any capital at all, hold gold, and are not so concerned about paper money scams and inflation of joke 3rd world currencies. They take that for granted (especially the wealthy) that is why they hold gold.

Bansters-in-my- feces's picture

Down over $17.00in like 3 miniutes.....

Fuck Yous Bankers.....

Your day is comming.

Yogieu's picture

Send them card with your gratitude - you can buy more cheaper :)

anonum's picture

lol, Look at the rebound. Gold just got angry?

toothpicker's picture

Nice world: algos trading on lies. What can go wrong?

_underscore's picture

Luckily, I can afford to have 'strong  hands' in the PM game & these obvious manipulations make me even more determined to keep in the game until the bullshit unwinds & lands in their cheating faces. In fact, I feel a bit like a gold 'freedom fighter' - you know, the more they knock you down, the stronger you get up.

Perhaps rather contrarily, the more the game becomes obvious, the more bullish it is for me - if gold was 'just a commodity' they'd hardly bother with all the shenanigans would they?  Proof positive.

 

zilverreiger's picture

they want irans oil for gold cheaper?

savagegoose's picture

WTF when is lower  interest rates meant to  decrease the worlds appetite for gold?  gold is a haven for money when there is no interest payments!  fuck it, %15 interst rates is what destroyed gold at $800 back in the 80's

 

 

DeltaCharlie's picture

good point @ zilverreiger.... maybe this is just a ruse so to appear that they are trying to go along with US sanctions. Say one thing, do another!

Zero Debt's picture

Gold thrives in negative real interest rates. India's real rates just got even more negative. India's leaders know this. They are running huge deficits and need to print massively. They are running inflation as high as they can without provoking social unrest. And now they are trying to talk down gold. Last few weeks they tried to kill gold with taxes. Now they are trying to use propaganda to mitigate the effects of easing. India has to bail out itself. It is the old Fed playbook post Operation Twist. Why are they even bothering to talk about gold, if they didn't have this issue? The fed is playing this trick constantly. No wonder, because gold was creeping back over 1650 again. Next stop 1680 would happen rather soon and once 1680 is taken out, it will get to 1705 or even 1720 rather quickly. Lots of new spec shorts would be in pain over 1660 already. I believe it is getting rather hard for the shorts to hold 1650 now, I for one would be sweating on a daily basis while looking at the SMA:s. It is more of Pavlovian mass psychology market conditioning: ease + talk down gold + hit gold with outright market ops.

Zero Debt's picture

In case you haven't seen it, Rupee gold is exploding, near 90,000 Rupees!!

http://www.bullion-rates.com/gold/INR/Year-5-chart.htm

"Chart of the day"

If you were the Indian central bank and you saw this chart.....
You would have to ask yourself...
"What shall I tell my boss when it goes to 100,000 rupees?!!!"
Maybe just go drown myself in Gagnes....

Stuart's picture

BTD.  Lets see if there's intelligent life out there to see through this blatant market management and take advantage of it.  

Update: Apparently there was intelligent life able to see through that BS after-all.  

monopoly's picture

Your words are not even worth a reply if you think gold is in a bubble and fiat money is anything but worthless. Suggest you move on to the cnbc website where your views are appreciated with the other "brilliant ones".  We really have no use for you here.

paddy0761's picture

To quote The Black Knight:

 "It's just a flesh wound".

http://youtu.be/zKhEw7nD9C4

 

mogul rider's picture

 

 

 

coincides with the current website attack on king world news. The site is down right now.

 

Anonymous we need assistance here. Can you guys tear the MAN a new asshole

 

thanks in advance

paddy0761's picture

Good old Eric must have tried to post something too juicy.

Zero Debt's picture

I was just wondering.. why KWN was down...

Silveramada's picture

YEAH! we buy more of that shiny stuff you tards! keep give us discounted prices now: more profit later when gold is 7000$ and silver is 600$!!! BUAAAHHAHH!

caconhma's picture

Central Banker just forgot silver. It is stable.

Comodities are almost all up: agriculture, oil, etc.,

The boat is leaking! They might keep gold in check but what about other commodities. Regardless of what they do, they are doomed. The terminally sick patient just got LSD...

PS

New world reserve currency will be iPad. Everybody wants it specifically the USA and China.

toothpicker's picture

they forgot to turn on the Mega Silver Algo Bashing Machina

caconhma's picture

One more thing: people , you are all wrong!

The flood of fiat money must go somewhere. There are no ifs or maybes about it. Therefore, the Zionist Banking Mafia would rather see gold at $3,000 than gas at $5-7/g or bread at $10. After all, Joe-sixpack is not watching gold prices...

So, be ready to see gold prices go exponentially up very soon!

RoadKill's picture

Subject gold and all raw gems and jewelry to a 25%-50% luxury sales tax. :)

engineertheeconomy's picture

Subject the Dollar to sales tax when they print it, but demand payment in GOLD

That'll fuck em up

Schmuck Raker's picture

More info about the government's efforts to help homeowners at this link:

www.makingGOLDaffordable.fed

Venerability's picture

Clearly they are just trying - desperately - to preserve Princess Dennis's reputation, which is now in tatters.

Let's see if we get the exact same thing we got with the Brent Stocks yesterday: Brent artificially taken down, Brent Stocks UP nicely.

Reprise pattern today could be Gold artificially taken donw, Gold Stocks UP nicely.

And once again: We are in for some literally humongous - momentous - sector M&A, because it won't be based on juniors, but on takeouts and mergers-among-equals of XAU, TSX Gold, and HUI components.

It is about to start. Fasten your seatbelts. 

 

Paul Atreides's picture

The war on gold is ramping up. Two key articles on gold this month came out on King World News

The first: London Trader – Fed’s Global War Against Gold Escalating

The second: Expect Another $17 Trillion of QE & War in Gold

You can read the partial articles with the links above but the originals are unavailable atm (if anyone has alternate links please reply with them). TPTB did not want this information released to the genpop so they have run DOS and other attacks on the servers. The KWN servers are on lockdown (protected) for the time being.

What does this mean? Gold is a spring which is ever being more tightly squeezed by central planning, the sovereigns needs as much as they can for leverage when SHTF so they are dumping paper gold in step with relevant geopol news, smashing down the price then quietly loading up with physical.

 

 

engineertheeconomy's picture

so they are PRINTING paper gold, smashing down the price

there, fixed it

mogul rider's picture

I have zero time for gold pumpers but I also accept that sometiems differing opinions needs ot come together to bend the man over.

This is one of them

 

facts

Gold plummets though a nothing floor for no reason other than:

India

King world site down on attack - happened on april 5 and 11th too

Canada's central bank troll threatens interest rate increase which is simply a gold attack.

They know that folks around the net go to Eric's site for a quick update and here. I would imagine Tyler you are next......

 

 

GlenD's picture

why is gold sachs trying prove us gold sucks all the time. Make it rise you axxxholes

 

Flying Wombat's picture

Nice to see ZeroHedge covering this story.  Most in the media don't have the cojones, even when it's known and reported that manipulation of all other things related to money (interest rates, bond purchases, and on and on) is right out in the open.

icanhasbailout's picture

BTFD - but only on things where the underlying value can't be inflated away.

Kina's picture

So the Fed and their bullion bank mates are actually acting in a Treasonous manner. Manipulating gold as low as they can, where it can be bought up in greater quanitities by other governments.

Wonder if they will end up executing some people for treason when it is realised they have given Asia all the gold and made the US an economic weakling.

 

Blatant open corruption in your face by the Fed and bullion banks. They know we know they are corrupt and breaking laws. They know that we know they own the regulators and politicians, so they wont be bought to account and punnished.....unless of course the shit hits the fan propertly and the US economy crash 2 x 1929. Then nothing will save them from the truth commissions that will follow.

 

They ought to study history to know what is going to happen to them.

paddy0761's picture

Interestingly, I was watching the HUI & XAU closely throughout that little smackdown and neither of them seemed to buy into it. The $BPGDM looks like it has bottomed with gold making a higher low (right shoulder); which is usually a good sign.

http://stockcharts.com/h-sc/ui?s=$BPGDM&p=D&yr=3&mn=0&dy=0&id=p44946649940

 

engineertheeconomy's picture

If you all would do as I do and go buy physical every time they do this, eventually they would have to stop because there would be no physical left on the shelves and this would cause the price of physical to skyrocket

The war with the central bankers is being fought on the shelves of your nearest bullion dealer

Supply and demand

There, on the shelves

Believe it

Bitchez

Confundido's picture

ECB margin calls met with forced gold sales...Makes sense? Did anyone notice that the selling algo is now before 10am. It used to show up at 10:30, then at 10am.

So, now they got us back to a floor of $1,636. A lower low. Which means they need to make lower highs = They won't let $1,650 happen again, in a long, long time.

 

paddy0761's picture

$1650 might be tested sooner than we think.

squib's picture

$1652 two hours after the guy above you posted. Not bad if you are a bacterium.

Great call about not seeing $1650 for a while, wow. Hope you posted it on facebook.

smiler03's picture

Indeed. It actually opened at $1652 ;O)

SDRII's picture

Bloomberg joins the party suggesting: "March Gold Sales Drop as Stability Returns, Perth Mint Says"

http://www.businessweek.com/news/2012-04-16/gold-sales-drop-in-march-on-...

 

 

paddy0761's picture

Mmmm. I bought from The Perth Mint in March; obviously I didn't buy enough.

Al Huxley's picture

Or it could just be that there's a big chunk of April GLD options (put and call) in the 160 neighborhood, and pegging the price at that level for the next few days will make those options more or less worthless.  So it's just good financial management if you're an options writer/bullion bank.

Kina's picture

THe Fed pathetic. Trying to block the truth by blocking King World News, as though there are not another 10,000 holes in they dyke all over the world.

The Fed will have to get Obama to turn off the internet in the USA.

No Turth allowed in the USA.

 

So which one is Stalin?