The CPI number and news out of China is what is moving the gold market today
Click download link to listen on this device: Download Show
Hope not Dai, but I do think there is a better than average chance.
I think Dai……is correct……..I also, read the same info………
More on Yuan – Gold Stress and GOFO
zerohedge had this up shortly after the big move down in gold, as Chris is highlighting
http://www.zerohedge.com/news/2014-04-15/gold-tumbles-most-4-months-china-demand-slowdown-fears
Remember back when the US had their liquidity crisis in 2008 EVERYTHING was sold including the so called safe haven, insurance against?? mighty Gold.
Very, very interesting times!!!
Thanks original jj.
If it is sales of “Collateral” under duress, don’t you think they would be selling to maximize their loss rather than dump “Stink Bombs” @ illiquid times. It just looks like a “Stink Bomb” Raid. (Period).
I meant “minimize” their loss in my last post, sorry!
Sorry, this whole China deleverageing is a complete BS excuse to try to explain why selling is hitting the market. In following the precious metals markets for the past 10 years, This type of Chinese leveraged buying was NEVER used as the reason for the price rise, NEVER!!! This is just more propaganda to explain the unexplainable since the manipulation argument is getting old. The reality is NO ONE knows why this happens, and trying to “find” an answer is a waste of time and energy. It is what it is, that is all. You invest in your theme or you don’t. You believe or you don’t. The rest is hyperbole.
Agree Jeff that the China argument is nonsense. Some people are looking for any excuse to justify the gold move today. All I can say is it was needed and overdue. The best gold analysts around have said without hesitation that gold has not yet bottomed. They said so long before this tidbit of China news came out.
Listen to the second editorial we did with Chris about 2 p.m. pst.
Knowing how these markets are controlled electronically I wouldn’t be surprised that both Chris and Gary are right. The Chinese info was announced, gold was hit and then the technicals (stops) and rigging took over. Give the boys a reason to take gold down and they are all over it.
The Reuters story Mr. Temple is referring too is not unknown – i.e it is nothing new per se.
The suspicion that gold was allegedly used as a collateral for financing operations in China (same as copper, iron ore, which got more publicity) was mentioned already a few weeks ago in – if I remember correctly – a Zerohedge article on the back of some Invt Bank report (JPM or GS if I recall correctly here too) explaining the mechanism.
So to me, mentioning this article as one of the catalyst for today’s gold’s decline kick-off in Asia is not valid.
Pasted below is the Zerohedge article I mentioned.
http://www.zerohedge.com/news/2014-03-22/how-china-imported-record-70-billion-physical-gold-without-sending-price-gold-soarin
Also, my previous post had a typo, and its first sentence shall have read as follows:
“The Reuters story Mr. Temple is referring TO is not unknown – i.e it is nothing new per se.” Apologies for the potential confusion caused.
I understand that Wall Street is more leveraged now than it has ever been. 1929 being revisited?