JPMorgan suggests big changes in CFTC futures positions were behind the sell-off in gold. There...

JPMorgan suggests big changes in CFTC futures positions were behind the sell-off in gold. There are three [available] high frequency flow indicators (CFTC futures positions, gold ETFs, and gold coin sales in the U.S) the bank says. "There has not [historically] been a strong correlation between ETF flows and gold prices," while "sales of American Eagle gold coins … have actually risen sharply over the past two weeks." That leaves CFTC managed money futures positions, data for which was only available through April 9 at the time JPM opined on the issue.

From other sites
Comments (6)
  • ddearborn
    , contributor
    Comments (180) | Send Message


    500 tons worth of paper gold was dumped on the markets on Friday the 12th. This was a coordinated attack on gold by a few very large players. Just look at who profited from the massive drop in gold and silver. Who held the largest short position in these metals in the entire world? And who just made billions of dollars in profits? Who was in a position to stage this attack on gold and silver? Funny thing JP Morgan is always at the top of that list.........
    22 Apr 2013, 08:00 AM Reply Like
  • whidbey
    , contributor
    Comments (3539) | Send Message
    "There has not [historically] been a strong correlation between ETF flows and gold prices". Just nonsense. When for whatever reason gold etfs sell-off, the funds sell gold bullion used to back the ETF to raise cash to return to etf sellers.


    The CFTC actions are not clear, but the "explanation" by JPM smells of an attack on regulators. JPM has a number of reasons to engage in such mud throwing. It is a speculator.


    More likely, the dollar is rising, and as a rule, gold is inverse the dollar. That and the extreme margin positions on the street recently suggest it was liquidity management that brought gold prices down.
    22 Apr 2013, 08:15 AM Reply Like
  • mstrong1
    , contributor
    Comments (89) | Send Message
    The fed sucks up the losses by their stooges, but instead of driving investors out of gold, they have driven more to come in and demand delivery of physical
    22 Apr 2013, 08:20 AM Reply Like
  • kmi
    , contributor
    Comments (4584) | Send Message
    For those who didn't understand the market current, JPM is pointing out that managed money exited its positions in the gold futures markets, and managed money is "large speculators".


    Some info on what that means:


    "Large specs" will move in whatever direction they feel makes money, and it's become clear that gold isn't going to move in the way other asset classes will during 2013. For those calling this an 'attack' or implying there are some sort of coordinated shenanigans, it's less likely that's the case than the fact that multiple large position holders identified the same trend at the same time.


    This move also pinpoints the outsize effect speculative money has in commodities markets, which were erected not for speculation, but as a means of price discovery and hedging for producers and consumers.


    Commodities markets aren't very large vis a vis the speculative money that is being 'invested' in them (of course the word 'invest' with regard to a commodity that produces nothing is peculiar in itself).
    22 Apr 2013, 08:57 AM Reply Like
  • bertrandrighi2
    , contributor
    Comments (35) | Send Message
    The job of JPM and other big money managers is to make money. Money for THEMSELVES. Hence it would be foolish to follow any of their advices, except to find out what they are cooking up at the expenses of Joe Average.
    You cannot really follow their move, and they don't decide PRECISELY when they make the first move. All is under the control of the super computers, that are testing, and then full throttle when it is the RIGHT time.
    It's no chance to enter a race against big engines blowing thousands of HP, with your nice bike even it's perfectly tuned up.
    This is quite recent. I could not say when this situation occured exactly, but so it is...
    Indeed those machines can play with air only, paper, futures, promises, swaps, ETF stocks.
    Seems the public got it, as they were running on bullions, American Eagle a big winner.
    Watch LARGE. Watch the world over. The price of Gold is NOT made in the US, where the trade, would you believe, is a small fraction of the global one, when it comes to PHYSICAL at least.
    When American Eagles are in demand in the US, in India, in China, in Russia, in Japan even, not only the Central Banks are buying like crazy, but people too queuing up to buy PHYSICAL.
    In Europe they don't: they are BROKE.
    For Islam world, they never stopped to use Gold as a currency, yes, my Dear...
    This is the world trend, on the ground of thousands of years of use + a growing sense of unsecurity...
    JPM may speak and / or do what they want, so far your future is not at 1 week or even one month...Keep course steady...
    22 Apr 2013, 09:31 AM Reply Like
    , contributor
    Comments (29) | Send Message
    Commentators have all forgotten to mention Goldman Sacks. These investment bankers now have been trading for themselves. Logically, whatever they say to the world, their self interest must be involved. Their "ex-employees" have positioned in many other financial institutions and of course at high level of government. So who do you think has great influence in the world finance? Investors have to be wise to use our own judgment and do not jump when they pull the strings.
    22 Apr 2013, 11:32 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs