Gold Takes Out 200DMA...The Other Way

Tyler Durden's picture

"Gold again proves it is not the safe haven many had hoped for, breaking the 200-day moving average, the first time since 2009 and signaling that prices may drop to US$1400/ounce." So begins a post by a "market strategist" from Roubini Global Economics as of less than a week ago. Well, since as the chart below shows gold just took out the 200-DMA, this time in the opposite direction upside, having proven the recent drop was nothing but a buying opportunity as was suggested by the non-Ph.D. community, we assume that using the author's logic, gold has proven that it is in fact a safe haven, and that since it is not going to $1400 it can only go to infinity.... Or is that us taking liberties with our lack of an economics Ph.D. a little too far?

Gold just took out the 200DMA (green dotted line).

Chart: Bloomberg

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camaro68ss's picture

Time to buy more gold with my fiat toilet paper

fnord88's picture

Yup. The government is a bunch of puppets disguised as clowns. They can keep their clownbux.

I think I need to buy a gun's picture

this is an overnight deal now,,,,,all these charts mean nothing,,,,,,its going to be revalued overnight

strannick's picture

Dont forget to give Big Roub a tweet when we hit the new highs, while he's waiting to buy at 14 hun.

DormRoom's picture

don't forget to tweet Roubini an apology when the gold collateral trade unwinds, and the mountain of leverage from the Gold repo trade goes bust, and collapses the gold market.

tmosley's picture

You can keep your dumb "market", I'll hold on to the gold, thanks.

nmewn's picture

Whoop der it is...lol.

Mr Lennon Hendrix's picture

don't forget to tweet Roubini an apology when the gold collateral trade unwinds, and the mountain of leverage from the Gold repo trade goes bust, and collapses the gold market.

Gold collateral trade....unwinds....you mean when Bernanke sells USTs and MBS (not to mention corporate equity/debt) back into market?  When the hell is that going to happen?

 the mountain of leverage from the Gold repo trade goes bust....you mean paper gold decouples from physical,,,,but that's when I want to own gold!

Dorm Room, I swear you are just writing these things for fun

strannick's picture

Yeah, like the yen collapsed when its carry trade was unwound? Or like the dollar has been collapsing now? I think DormRoom meant to write 'explode' instead of 'collapse'.

Roubini -like other radically wrong anti-gold gonzos- will be getting condolences, not apologies.

redpill's picture

Actually he'll get nothing.  Worse than nothing to be precise.  In fact, suddenly every vacuous talking head on CNBC and Bloomberg will suddenly have total amnesia and entirely forget his name and everything he has ever said, and immediately pretend they haven't had him on their show countless times rhetorically whacking him off while he says the same irrational dumbass things.

trav7777's picture

let's not crow about day to day movements to the upside anymore than Joubini crows about them to the downside

tmosley's picture

Right, only you get to do that.  Inferior Arabs don't have that right.

Alienated Serf's picture

roubini is a persian jew, not arab.

tmosley's picture

Don't confuse Trav with such distinctions.  He won't know whether he is superior or inferior.

Definitely don't tell him that Jews and Arabs are about as genetically distinct as the Welsh and the Scots.

bob_dabolina's picture

Here's some food for thought. 

Did you know that the emancipation proclamation was actually written by the largest slave owner in Maryland and that slaves on the border states like Maryland were never "freed" 

Also, did you know that Abraham Lincoln not only wanted to free the slaves but his intentions were for them to be shipped back to Africa?

What's really funny about Obama is that he idolizes Obama even using Lincolns bible on his innauguration day. Goes to show how many American history books Obama read.

tmosley's picture

You mean the original big government liberal was actually a racist, just like the vast majority of modern day liberals are?

Say it ain't so.

wanklord's picture

Americans are a bunch of stupid animals

Jendrzejczyk's picture

Have you been hanging out at my Wall(s)mart again?

pine_marten's picture

Who tramples one another at football matches?

Hugh_Jorgan's picture

Sorry, but a "safe haven" is not something that is guaranteed to deliver 25% gains, annually. Why do so many educated people look at PMs the same way they look a a share of AAPL? Gold is a safe haven because it will never be worthless, unlike all the fiat currencies, bonds, warrants and any other BS security mankind dreams up. During the period we are entering, the previous "pillars" of our society are no longer trustworthy so we cannot expect a low level of risk when we invest in them. So if we want to preserve any wealth, we must treat anything of intrinsic value as the investement of choice. Land, food, guns, ammo, PMs and solid family/friendships.

bob_dabolina's picture

Anyone who doesn't sacrifice a lamb at the alter for blacks is a racist to you

Mr Lennon Hendrix's picture

The Civil War was not about slavery.  The War was about shedding blood.  They wanted to issue War Bonds, and guess who did?  The Banking Houses of Morgan and Delano.  They wanted to sell guns and guess who did?  Rockefeller.  Then after the war, pretending to free the slaves, they mandated the constitution to read that corporations were people.  The rest is HIStory.

Freddie's picture

Morgan was one of the Rothschilds errand boys.

Mr Lennon Hendrix's picture

maybe

or maybe he is in the Puritan side of the establishment along with the Pierces, Harrimans, Huntingtons, Russells....

thatguy's picture

"When the Jesuits were expelled from every Catholic country in Europe, their only refuge was Russia, Great Britain and the United States. Thousands of them flocked to this country to carry on their war against the Reformation under the banner of U.S. tolerance and freedom of religion for all. Among them were the Morgans, Roosevelts and German Roggenfelders. Roggenfelder was later changed to Rockefeller to make the name sound less German.  Rockefeller was 22 and already wealthy when the Civil War began. He refused to enlist when President Lincoln asked for 75,000 volunteers. Like J. P. Morgan and the father of Teddy Roosevelt, he paid for a substitute to fight for him. He even refused his younger brother the measly sum of $75.00 to meet his enlistment expenses.  His brother had to fight.....Rothschild controlled National City Bank of Cleveland gave him his first loan" But my real response is that everyone is one of Rothschilds errand boys in one way or another......I just remember reading this about John D.  He refused....how times have changed.

longonSpam's picture

I'd love some sourcing for this.

wee-weed up's picture

“I will say then that I am not, nor ever have been in favor of bringing about in any way the social and political equality of the white and black races – that I am not, nor ever have been in favor of, making voters or jurors of negroes, nor of qualifying them to hold office, nor to intermarry with white people; and I will say in addition to this that there is a physical difference between the white and black races which I believe will forever forbid the two races living together on terms of social and political equality. And inasmuch as they cannot so live, while they do remain together there must be the position of superior and inferior, and I as much as any other man, am in favor of having the superior position assigned to the white race.”

-- Abraham Lincoln

thatguy's picture

You mean he idolizes Lincoln,right?

fuu's picture

Obama idolizes Lincoln for using Lincoln's bible?  That still doesn't make sense.

lemonobrien's picture

here here, arogance always leads to a swift kick in the nuts. If I was bernank, i'd be in here, talk'n shit, then, pow, drop that bitch a $100, $200. Come back the next day, and bitch slap those feel'n da pain;

don't smite thee.

DormRoom's picture

must read:

IMF Working Paper
Research Department
Velocity of Pledged Collateral
Prepared by Manmohan Singh

 

http://www.imf.org/external/pubs/ft/wp/2011/wp11256.pdf

 

I assume gold to be used collateral [1], and highly leveraged. Thus the gold collateral trade.  So when the trade unwinds, gold prices will likely collapse.

 

[1] http://ftalphaville.ft.com/blog/2011/10/06/694891/lch-clearnet-to-accept...

 

yall assume the demand for gold is for long term investing, but I say its demand is from financialization, so actors can leverage.  Thus when the need to leverage dissappears, so will the demand.

 

The same collateral trade is likely being mirrored with the financialization of copper

trav7777's picture

gold is what is leveraged, though...people aren't levering other things to buy gold.  You seem to have your facts slightly awry

DormRoom's picture

yes you are right.  I constructed the sentence poorly.  big players are likely buying gold, using it as collateral, so they can leverage up for other trades.  This seems like a short term strategy, and may unwind abruptly.  So I'm just saying be careful out there in goldland.  That's all.

Mr Lennon Hendrix's picture

That doesn't make any sense.  You don't just leverage gold.  You have to spin a loan from the reserve to leverage anything.  If you loan the gold, then you have leveraged it based on what you do with the assets (cash).  Otherwise, you are holding gold as a reserve.

Mr Lennon Hendrix's picture

Trav, they are leveraging the whole fiat system on the gold reserves of the Central Banks balance sheets.  The only performing asset that is left on the books is gold.  Gold is leveraged ad infinum.

Al Gorerhythm's picture

715,000,000,000,000 just for sweeteners.

TheMadApe's picture

So what you are saying, in your own sweet little retarded way, is that the papertards will discount physical again. GREAT. I will add more to my collection while you to continue to live in la la land.

LynRobison's picture

Do you know what to do if gold drops to $1400? Accumulate physical gold!

Do you know what to do if gold drops to $1000?  Accumulate a whole lot more physical gold!

Livingstrong's picture

If GOLD drops that much, to 1,000 USD, believe me, you will not be able to find coins. I would certainly would not sell my coins at that price. Gold will be horded and kept until prices start to spike up again. I confess, it would be nice if it dropped to 1,000 or less, I would buy tons of more golden beauties (coins)!

Stoploss's picture

"Gold market" that's funny.  Gold is forced into a "market" so it can be controlled. Gold comes in pretty handy when there aren't any "markets" left to restrict it. Try a little pre roman/roman history, instead of porn, just for shits and giggles. You might learn something. Sitting in the dorm room all day.

tooktheredpill's picture

phd or no phd - still only human as Agent Smith would say

tooktheredpill's picture

and treasuries are still supposedly a safe haven too - go figure

Money 4 Nothing's picture

I don't disagree, but.. who does the revaluing? Caution.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I'll give you a hint.  They are a gaggle of demons recreated in the dead of winter in December, 1913 in the hallowed halls of the U. S. Congress.

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

That's what Gerald Celente says is coming in 2012.  Go to bed Sunday night.  Wake up Monday morning with fiat Federal Reserve Note devalued by, let's say 40%.  There are haircuts and there are "HAIRCUTS"!  It happened in Argentina in 2011 and it will happen here!

"If it is written on paper, it is worth the paper it is written on."   Pastor Lindsey Williams

seek's picture

Happened in the US in 1933 as well -- 41% devaluation. And we were latecomers, Australia, New Zealand, Japan all did it in '31, and nine major currencies had devalued by the end of '33. This was the whole reason behind the gold call-in and issuance of fiat at a new exchange rate in the US. Now that we're floating, it's even easier to devalue. (And anyone holding gold is even better off.)

russki standart's picture

It would not surprise me to see gold go back down to $1400 even after this uptick. In the short term, gold is affected by technical market factors, but the long run fundamental factors have not changed. Aside from certain price targets well up in the 5 figures, I will only sell my gold when some of the following conditions are satisfied:

-Fed. Reserve voluntarily disbands and the successor institution promises to link money printing to hard productivity gains.

-EU breaks up and each member competes to have the hardest currency

-Iran abandons plans to build a nuclear weapon, Syria reforms without bloodshed, Israel recognises Palestine,  NATO agrees to disband, Russia becomes a republic, the US government renounces force and become isolationist.

-Lindsay Lohan renounces sex, drugs and fame, shaves her head and becomes a buddhist nun.

-China becomes a democracy.

-AGW scientists are respected and revered by 80%+ of humanity and help establish an new one world green religion based on mutual suicide pacts to save the darter snail.

Until then, I will hold gold as a hedge against political corruption and stupidity.