Gold Daily and Silver Weekly Charts - End of Quarter - When Dollar and the Pound Are But Dust

This week is the end of the third quarter.

Those holding the big short in the metals might strive to keep the price down to make their 'mark to market' look less daunting.

Stocks may find a bit of a floor 'unless something happens.'

The fundamentals for gold look formidable. The long lull of summer may be coming to an end.

When the dollar and the pound, and the empires they helped to found, are but dust and faded memories of days gone by, gold and silver will remain.

In Egypt's sandy silence, all alone,
Stands a gigantic Leg, which far off throws
The only shadow that the Desert knows:
I am great Ozymandias, saith the stone,
The King of Kings; this mighty City shows
The wonders of my hand. — The City's gone,
Nought but the Leg remaining to disclose
The site of this forgotten Babylon.

We wonder, and some hunter may express
Wonder like ours, when through the wilderness
Where London stood, holding the wolf in chase,
He meets some fragment huge, and stops to guess
What powerful but unrecorded race,
Once dwelt in that annihilated place.

Horace Smith, Ozymandias, 1818

SP 500 and NDX Futures Daily Charts - End of Quarter Boogie Woogie?

The world will always welcome lovers, as time goes by.

Audacious Oligarchy: The Double Flash Crash In Gold - Sept 13, 2012

The 'Dr. Evil' strategy in two pictures.

From Nanex Research:

Trading was so furious in Gold, that the CME circuit breakers triggered and halted the futures contract for 5 seconds. First on the downside, then on the upside. This is the same circuit breaker that triggered only once in the eMini during market hours: that time was at the bottom of the flash crash on May 6, 2010.

The first halt in the December 2012 Gold Futures contract (GC.Z12) was at 12:14:44: you can see the gap in volume in the lower panel of Chart 1. One second before the halt, 2,000 contracts traded the price down $10, from $1,730 to $1,720. The CME halt logic triggers a 5 second market pause whenever orders appear that would remove all available liquidity and move the price by a certain amount.

For this event, this basically means that if this order represented a true intent to sell, then we should expect additional selling (from the balance of the order that triggered the halt) when trading resumes.

However, in this case, the additional selling did not materialize, which leads us to believe the large sell order was meant to disturb any market based on the price of gold. And disturb the markets, it did.

1. December Gold Futures (GC.Z12) ~ 1 second interval trades with depth of book color coded by how much size is at each level.

Note the gap showing the halt after the drop. The depth of book shows orders continue to be added/removed from the book during the halt.

Gold Daily and Silver Weekly Charts - Bear Raid in Honor of Quad Witch

Gold and silver were rallying hard to day, reaching new recent highs and threatening overhead resistance when they were hit rather hard and suddenly, on no news and without a commensurate move in stocks.

This looks like quad witching action.

Here are the charts so you can see where we stand. Intraday commentary discusses the daily gold chart formations.

See you Sunday evening.