Seeking Alpha

Gold slips below $1,300 as Yellen talks

  • After a meek attempt at a bounce, gold adds to Monday's major slide as Fed chief Janet Yellen testifies before the Senate and suggests rate hikes could come sooner than expected should the current trajectory of employment improvement continue.
  • Opining on Monday's 2.4% decline, Commerzbank notes a general decline in risk-aversion as evidenced by rising equity markets. Also noted is profit-taking after a big run higher for the metal and a buildup in long net long positions reported by the CFTC to their highest level in eighteen months.
  • GLD -0.8%
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Comments (6)
  • Brian58
    , contributor
    Comments (164) | Send Message
    Naked paper shorting, that's it. Take out the stops to try to kill the momentum.
    15 Jul 2014, 12:35 PM Reply Like
  • redhat63
    , contributor
    Comments (80) | Send Message
    "employment improvement continue", wow, I was unaware that people dropping out of the work force consituted "employment improvement". Thanks for the clarification Ms. Yellen.
    15 Jul 2014, 12:57 PM Reply Like
  • james.
    , contributor
    Comments (344) | Send Message
    The first bullet in the above article is ludicrous and completely wrong when it states that Yellen stated today to Congress that the "rate hike could come sooner than expected if the present trajectory of employment improvement continue"! The fact is quite to the contrary as has been noted on the article this morning published at 10:25 a.m. EDT on . Yellen clearly stated that even after the QE3 ends in October, the huge FRB Balance Sheet will remain intact and will continue to foster U.S. economic growth, contrary to Rubini who wrongly assumes that "QE3 unwinding" must occur! Yellen states that no interest rate increase in Fed Funds Rate will occur so long as the U.S. economy has headwinds! She only gave the FRB consensus estimates that the fed Funds rate will be at 1% on Dec 31 2015. 4 weeks ago, FRB member Charles Evans, President of the FR Bank of Chicago, clearly stated that the Fed Funds rate won't increase until early 2016, when he expects the FRB Inflation Index (w/o Food & Fuel price increases) will be somewhat above the FRB Target of 2% for a while; in other words, unemployment rate has nothing to do with it, because Demand-Pull Inflation cannot occur from these Part-time low wage jobs!! Read the discussion of the genius Karl Marx on "the dialectic" if you can't understand this, as the Great Depression was created by the exploitation of working class people as is now going on in the worst recovery since WW II.
    Gold is simply completing a technical pullback from the recent $105 advance from $1242 to $1347, which computes to a $1292 price for a 50% classical correction on Semilog Paper, which is exactly where Gold price pulled back to this morning !! Moreover, the XAU and HUI held up very well, as the ratio of Gold/XAU continues to fall, thus arguing for the continuation of long term Gold advance in this ongoing historic 13 year Gold Bull Market which started at $253 per oz in 2001.
    Gold is now rising up on its 3rd leg Super Cycle which classically takes it to new all-time highs of $2700 per oz circa July 2015. Gold classically concluded its 2nd leg Super Cycle with a Double-Bottom at $1186 per oz in Dec 2013, which is the Geometric mean between the high and low of that 2nd leg Super Cycle.
    15 Jul 2014, 02:53 PM Reply Like
  • minecanary
    , contributor
    Comments (538) | Send Message
    Hmmm, so we list every nebulous reason why gold might have gone down but don't mention the Fed threw 4 billion in puts on the pile.
    15 Jul 2014, 04:04 PM Reply Like
  • kcskcj
    , contributor
    Comments (2) | Send Message
    what a joke this whole system is. WAKE UP AMERICA.
    15 Jul 2014, 05:31 PM Reply Like
  • nooseah
    , contributor
    Comments (506) | Send Message
    Gold "slips" below $1,300 ....


    I don't think so, Buster. Gold gets 'slammed' below $1,300, more like. Check the trading charts for proof. Three big hits during the trading day -- all paper, of course, no hint of actual gold itself.


    What a joke. Will the SEC investigate? Of course not.
    15 Jul 2014, 11:53 PM Reply Like
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