Gold Breaks Below Key Support, Drops To 4-Month Lows

At 0907ET, someone decided it was the perfect time to dump $1.5 billion notional worth of gold, smashing the precious metal below its 200-day moving-average and back down to 4-month lows...


And so, once again, gold futures are tumbling...


To 4-month lows...but still up around 10% year-to-date...


What's driving the gold weakness? Who knows... because it's not the dollar...


Though Gold's sensitivity to USDJPY has picked up notably...


Justin Case Bondosaurus Rex Tue, 12/05/2017 - 12:19 Permalink

As Goldcore reports, the CBR has more than doubled the pace of gold purchases. In the second quarter of the year, Russia accounted for 38 percent of all gold purchased by central banks.“Gold is an asset that is independent of any government, and in effect given what is usually held in reserves, any Western government,” said Matthew Turner, metals analyst at Macquarie Group in London, as quoted by Bloomberg. “This might appeal given Russia has faced financial sanctions.”Brought to you by Goldcore.

In reply to by Bondosaurus Rex

YUNOSELL achmachat Tue, 12/05/2017 - 11:34 Permalink

thanks!… There's gotta be physical gold & silver shortages soon at these prices. If the richer people with much larger stashes were to actually start requesting delivery, there would be a huge day of reckoning. I just keep buying physical on days like today, and thank them for an early Christmas!

In reply to by achmachat

stacking12321 Kaiser Sousa Tue, 12/05/2017 - 11:32 Permalink

again with the ignorant "death to moneychangers" meme.i've challenged you on this many times, and you've never come up with a response as to why money changers are a changers are not a problem, changing one type of money or currency for another is a zero sum game, and doesn't harm anyone, in fact they provide a useful counterfeiters (the FED) are the actual problem, and counterfeit money is what allows naked shorting of futures ad infinitum.if you can't understand this basic concept, refrain from commenting.thanks. 

In reply to by Kaiser Sousa

stacking12321 Mr. Universe Tue, 12/05/2017 - 13:50 Permalink

If I fail to understand that, then perhaps you can explain it to me?Youve asserted that, but failed to provide a reason why that's the case.If I hand you 100 euros and you give me back 120 USD, then how has any counterfeiting taken place? No currency was created and it's a voluntary transaction, one that benefitted both of us. 

In reply to by Mr. Universe

Mr. Universe stacking12321 Tue, 12/05/2017 - 14:53 Permalink

There is an 800 pound vampire squid in the room and you need me to explain it to you. Go read the Bible, Jesus really hated the moneychangers. Not religious? no problem...

“Banking was conceived in iniquity and was born in sin. The bankers own the earth. Take it away from them, but leave them the power to create money, and with the flick of the pen they will create enough deposits to buy it back again. However, take it away from them, and all the great fortunes like mine will disappear and they ought to disappear, for this would be a happier and better world to live in. But, if you wish to remain the slaves of bankers and pay the cost of your own slavery, let them continue to create money.” — Sir Josiah Stamp, Director of the Bank of England (appointed 1928). Reputed to be the 2nd wealthiest man in England at that time.

Fractional reserve banking is money changing and the Banksters are the modern moneychangers.Perhaps you need to educate yourself because if I go into Bank of America with 120 Euros I for sure will walk out with less than 100 dollars.Try this

In reply to by stacking12321

stacking12321 Mr. Universe Tue, 12/05/2017 - 22:35 Permalink

you really are one of the stupidest commenters i've come across on zh, and i'll take a few moments to explain why, maybe something will sink in to that hard head of yours.i'll set aside your religious BS for the moment, which you got wrong as well (jesus' issue was with the moneychangers operating out of the temple, not their occupation in general) what you said is simply NOT the truth, and it is also not logical:"Fractional reserve banking is money changing and the Banksters are the modern moneychangers"wikipedia, for example, says :A money changer is a person or organisation whose business is the exchange of coins or currency of one country, for that of another. This trade is generally thought to be the origin of modern banking in Europeby this definition, fractional reserve banking is NOT money changing.the fact that you are conflating the two shows that you aren't able to understand the difference between two clearly distinct concepts. even the final comment you made, was completely backwards:"Perhaps you need to educate yourself because if I go into Bank of America with 120 Euros I for sure will walk out with less than 100 dollars."100 euros to 120 dollars, not the other way around, again: sloppy thinking and sloppy comments on your is you that needs to educate yourself, as you've shown.and if BoA, or anyone else who exchanges one country's currency for another's, offered 1.15 or 1.10 dollars to the euro instead of of 1.20, that's their business, if you don't like the offer, DONT FUCKING TAKE IT, no one is forcing you!you've 100% failed at providing any explanation whatsoever as to how someone who exchanges one type of currency for another, has done anything STFU and sit down, son, come back when you have a rational argument.

In reply to by Mr. Universe

bobsmith5 Snaffew Tue, 12/05/2017 - 12:20 Permalink

None of the money changers are Jews. They hide behind that name the same way the communist socialist hide behind the word democrat. Your problem is that you never ever define your terms. Therefore they own your mind because they control the language with which you think. It is the Satanist who own the banks and the money changers who create the fiat out of thin air. Money changers and fiat creators are one in the same.

In reply to by Snaffew

Justin Case Haus-Targaryen Tue, 12/05/2017 - 16:42 Permalink

All gold-futures short selling is soon followed by proportional offsetting buying. So that guarantees imminent buying! Gold's upside price impact is identical from short-side speculators buying longs to close their positions and long-side speculators adding new longs. While normal long buying is voluntary, short-covering long buying is mandatory.And once short covering gets underway, it quickly feeds on itself due to that extreme leverage inherent in gold futures. At 30x, a mere 3.3% gold rally would wipe out 100% of the capital risked by fully-leveraged gold-futures speculators! So once gold starts powering higher again, they have to cover fast or face truly-catastrophic losses. Their short-covering buying pushes gold higher, triggering even more buying which snowballs.

In reply to by Haus-Targaryen

HRClinton shitshitshit Tue, 12/05/2017 - 12:12 Permalink

PREDICTIONCCs will liberate PM from the yoke of CB oppression. As the CC Ecosystem evolves, you will see the emergence of...Symbiotic relationship between a CC and AU.  - CC as global Street Money   - AU as backup store of value (I'm already trading BTC for AU -- Au kept safely offshore in a SD Box -- and talking to peeps who are planning to do what I describe above. Which is a big reason that I'm on the verge of leaving the US/IRS Plantation and moving to Switzerland. Zug is its CC capital, with developers everywhere.)"CCs sans Frontières"  -- CCs without Borders"CCs ohne Grenzen. CCs sin Fronteras. CCs bez Granica. CCs brez Meje. CCs senza Frontiere.

In reply to by shitshitshit

Give Me Some Truth shitshitshit Tue, 12/05/2017 - 14:41 Permalink

At some point the dollar will die. But when EVERYONE in the world is literally invested in prolonging its life, this might take longer than we think is possible. It already has.I do think the demise of the dollar will happen when we least expect it. When we think this is no longer possible. Who knows? We might be at that place now.I do know that when it comes to the importance of money printing, we ain't seen nothing yet. That is more important than ever. But it will be more important tomorrow. And then next month. And next year. We think the printing press is running full throttle now. (Picture Quint in "Jaws" revving the boat motor in the final act of that movie). The engine is going to blow.

In reply to by shitshitshit

Justin Case Give Me Some Truth Tue, 12/05/2017 - 16:47 Permalink

Evidence of gold-market manipulation is not evidence of long-term price suppression. Ya, if long-term price suppression was true, then it would be an example of market manipulation, but market manipulation generally does not involve long-term price suppression. I purchased gold for $284.00/oz. That is far below the current manipulated price today. You cannot purchase gold anywhere in the world for $284.00/oz. Does this indicate that the price is being manipulated up?

In reply to by Give Me Some Truth

PhiPhi Justin Case Tue, 12/05/2017 - 20:12 Permalink

@Justin CaseYou are taking a very binary view, there is not an absolute immutable price that gold has to be held below. It is my belief based on the released BOE documents from the late 70's to early 80's covered by Ronan Manley show the intent of CB's to manage gold within a range to prevent potentially large fiat currency fluctuations (devaluations).  Gold can rise overtime but big moves upwards are suppressed for the benefit of fiat, in particular the USD and Euro, gold (and silver) could potentially be 2x current spot price or more without this manipulation. 

In reply to by Justin Case

ZH Snob Boeing Boy Tue, 12/05/2017 - 11:21 Permalink

their hatred of PMs is really quite perverted.  they know the fiat system is collapsing, so they are trying like the devil to shake out the strong hands and drive it down as much as they can.  their greed is such a driving force that they really think they still have time to grab more fiat to eventually sop up the gold.however, there are other players with other interests.  

In reply to by Boeing Boy

Give Me Some Truth actionjacksonbrownie Tue, 12/05/2017 - 14:35 Permalink

Re: "Gold is dead."This is dang sure the message/conclusion this campaign has been trying to achieve for the past six years. The consistency of the smash downs has been the key to the operation. Body blow after body blow to precious metals "sentiment" by the boxer who is trying to protect sentiment for fiat/printing press currencies.I think the "fight" or "war" analogy between gold and fiat is apt.

In reply to by actionjacksonbrownie

Give Me Some Truth dark fiber Tue, 12/05/2017 - 14:31 Permalink

You may be right that "something big is going to happen." Then again, this might be taking place just to send metals as low as possible at the end of the year. An emphatic exclamation point to the year to all us "gold bugs" who keep waiting for the true state of the economy to matter.I think things have been sent lower right before the next round of "debt ceiling/government shut down" talks. In the past, this drama was actually bullish for safe-haven precious metals. Not anymore.  Because this "should" = "higher metal prices" means that this WILL instead result in "lower metal prices." Up is down. Down is up. Bad is good. Good is bad etc.And when the next debt ceiling "crisis" is invariably averted, then the metals will get yet another smash down. All those predictions of $12 silver might materialize. Yes, at the same time the debt ceiling is extended to infinity and the national debt goes up by half a trillion in one day. Go figure.What Should Not happen is now What Will Happen. We live in surreal times.    

In reply to by dark fiber

Give Me Some Truth ZH Snob Tue, 12/05/2017 - 14:21 Permalink

This is SERIOUS BUSINESS to them. Nothing is more important than suppressing the price of monetary metals. NOTHING. I say this because nothing would jeopardize the fiat-dependent "status quo" more than the prices of monetary metals ascending consistently and/or rapidly. If this is NOT PREVENTED, nothing else they do matters.Everything they value, and their elevated position in the world, would soon vanish if this "manipulation program" were not in effect.Hell yes they are going to be ruthless and brazen in protecting their status. If the "status quo" changes they are effectively toast.  

In reply to by ZH Snob