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GoldFix: Making Sense of Gold Last Night

Welcome. GoldFix is original content. The goal is to give you, the reader, some basis for looking at markets as you prepare your own trading day. Second, it aims to give you more tools, or at least the basis for developing your own tools to navigate markets. To that end we expect there will be changes based on feedback. Gold is the jumping off point for analysis.

GoldFix Daily Brief
Good Morning. The DX is down 4. Bonds are firmer. US Stocks are mixed. Gold is down $20 but was much lower last night. Silver is currently down 38 cetns. Copper and Oil are down. Only Crypto is firmer from Friday’s closes
Here’s What Happened Last night was uneventful in every market except Precious Metals, with Gold being the focal point. Here’s what happened from Zerohedge
In the liquidity void that follows the resumption of futures trading, and which saw US futures trade modestly lower, a sudden burst of selling in the gold futures contract sent Gold pries plunging to as low as $1,677.0 or almost $100 lower from the Friday close of $1,761.50.
The clear explanation goes on:
Together with Friday’s post-payroll plunge, this has been the biggest 2-day drop in gold (in dollar terms) since the March 2020 crash.
However, unlike Friday when gold moved in response to the spike in the dollar and the surge in yields there was no offsetting move in any securities after the futures reopen (the 10Y traded back over 1.30% but the move was orderly) when over $4 billion notional, or some 24,000 contracts were suddenly and furiously dumped in a completely price-indiscriminate manner whose apparent intention was to nuke the entire bid-stack.
While there was no news or even pair-trade correlation catalyst behind the move, technicians have noted a “death cross” alongside a technical breach of USD 1,750/oz which triggered liquidation stops to the downside.- Full Article
That is what happened. Now to answer why did it happen possibly.
What’s It Mean: Special GoldFix Broadcast games out the possibilities, risks, rewards, and caveats for investors and traders. Approximately16 minutes devoted entirely to making sense of the selloff event last night.
There are many possible explanations. But there are few types of explanations that are legitimately possible.
GoldFix Weekly Premium
On Deck: After all the excitement from Friday’s jobs report, we get a look at the other side of the U.S. labor market this morning when the JOLTS job openings number for June is published at 10:00 a.m. Atlanta Fed President Raphael Bostic and Richmond Fed President Tom Barkin speak later.  BioNTech SE, Barrick Gold Corp., DISH Network Corp, and meme-stock favorite AMC Entertainment Holdings Inc. are among the companies reporting results.
Gold Technicals
The following are excerpts from Moor Analytics Technical Reports posted here with permission and not actionable out of full report context.
Upside: I am writing this from the lower call. Sell against/into $1,750.1-46; get long above. Sell against $1,780.7 (-1.2 tics per/hour starting at 8:20am). Sell against $1,789.1-90.7. Sell against $1,817.0 (+1 tic per/hour starting at 8:20am);
Downside: I am writing this from the lower call. Get short below $1,728.8. Get short below $1,714.3-10.0. Get short below $1,695.2-4.2. If we break below here and back above, look for short covering to come in.
Special Lecture: Pay For Orderflow Explained
Given the recent attention to RobinHood’s IPO and their questionable business model, we gave a full on explanation of how Pay for Orderflow works. The 2 hour lecture is a deep dive into the definition, practices, and real life experience in this practice from a 30 year veteran who lived it. The University quality lecture covers the evolution from the late 1990’s to today’s use. GoldFix subscribers can access it for a limited time using Access. Video Link HERE Passcode: 3Dyb$+=+
That’s it, Good Luck
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