Big Sale in Gold This Morning and The Outperformance in Treasuries Against Gold
Kicking off today with Chris Temple and an initial focus on the 56 tonne sale of gold futures. This all plays into a bigger picture where gold has been trading in a tighter range now on deceasing volume. We have also seen treasuries continue to outperform when compared to gold. Chris provides his comments on this recent trend as well.
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A mistake to sell $2 billion in gold all at once? Yeah right, LOL. These “mistakes” have happened regularly and always on the sell side over the last few years and usually when gold is at/ near a key technical level.
Apparently all the entities that can afford to own billions of dollars in gold all employ idiots with fat fingers. Or maybe there’s another explanation that actually makes sense.
The bears paid a lot for another two or three days and I’m glad they did. There is now more fear and fewer weak hands – just what a bull market needs to thrive.
GDX is down much less than gold:
http://stockcharts.com/h-sc/ui?s=GDX&p=W&yr=3&mn=3&dy=0&id=p58272600197
Yes, that seems right Matthew.
IMO they dump gold at strategic inflection points to basically tamp down enthusiasm, even if it’s temporary, knowing they can’t drive it as low as they want anymore.
Good comment Jay.
The media and the Politicians continually insult our intelligence buy playing the dumb card.
Jay:
If you sell $2 billion in gold in the futures markets, you have to buy back those contracts. What happened is called “running the stops.” It’s perfectly legal and happens in every market and it’s pretty close to meaningless. Real commodity traders know that.
they don’t have to buy them back if they were selling their long position that we’ll never know. My friend is a currency trader and often he will sell $100 mill just to trigger stops and fill his boots as sellers join in but he really is a big buyer…oh the games the big boys play!
Trader bill:
Thank you for saying exactly what I said. It’s running the stops and perfectly legal. Nobody sells a physical position by dumping it on the market in the middle of the night, only commodity traders. And yes, they clean up. But big surprise, gold is right back up. Who could have guessed?
gold,tnx,yen…the dance continues
GLD found some fork support this morning (my old arrows were partially correct):
http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=1&mn=1&dy=0&id=p43973533846&a=527851584
GOEX looks just fine:
http://stockcharts.com/h-sc/ui?s=GOEX&p=W&yr=2&mn=7&dy=0&id=p61847905372&a=531021435
They have more of a focus on Jr miners, so that is encouraging.
Also with a cool name like Go EX! of course they look fine… (hahah!)
So Chris buys the explanation that the gold dump was a mistake. Unless somebody fired that trader, I’ve got to disagree. JMO
I didn’t know I bought that — is that what I said??
I guess that is the way I interpreted what you said. My bad if that isn’t the case.
Chris is a pretty smart cookie, I gotta disagree this time tho.
I never understand why some people find it hard to believe the PM market is controlled.
Maybe the price skyrockets when the control ends, course the price of a loaf of bread might get to $100 and we have ravenous mobs roaming the streets but what the heck.
On the other hand, tptb may know exactly when they intend to allow the price to rise.
Maybe as Rickards says, when China has enough.
B:
Was gold controlled as it ran from $252 to $1923 and silver from $4 to $49? If it was, the controllers were very bullish.
I would have to say it was Bob, why they let it go as far as they did I have no answer for, I can only guess.
LBJ told people in 1964 I think, maybe 65, that the government controlled the price.
He told people there was no point hoarding the coins.
Right or wrong, about saving them,he told people the price is controlled.
I have watched tons of gold and or silver sold every time the price goes up for decades.
And it drives the price down.
2, exceptions of course.1980,2011/12
Twice in 30 years? thats not really losing control.
I doubt its coincidence.
Good to hear Chris’s thoughts on where we are currently because, frankly,I can’t make head nor tail out of it all.
I read a 101 articles over the weekend – about half were arguing to the Moon on gold, the NASDAQ, gobal markets,oil and the other half were saying that they were all about to crash in a 1929 crash.
Just read Jeff Kern’s latest on 321Gold. I like what it says and likely you will too: http://www.321gold.com/editorials/kern/current.html
I am confident that Jeff will be right.
Thanks SD – I will go have a read.
Where Do Gold Stocks Go Next?
JUNE 26, 2017 JORDAN ROY-BYRNE CMT, MFTA (Featuring Jeffrey Kern)
Jordan seems to be leaning a bit more to the possibility of a move up but he still hedges too much for me……….Jeff gives one a direction and it tends to be correct about 80% of the time. jmo
+1
Jeff’s SKI system is superb for what it is.
Why would a ‘fat finger’ simultaneously affect the currencies?
Note the second chart:
http://www.trendlinemagic.com/2017/06/gold-support-test.html
Too many ‘fat fingers’ in the pie…lol.
Jeff’s USERX chart….weekly … the sma of 10 works well
It’s a “dog’s breakfast” out there.
It’s a nasty market alright.
I don’t think that outperformance will last.
http://stockcharts.com/h-sc/ui?s=TLT%3AGLD&p=W&yr=6&mn=9&dy=0&id=p67840102747&a=518122837