ignition charts

[pmbug]

 

[swissaustrian]

Mainly DXY and helicopter Ben driven today, but also keep in mind that opex is tomorrow. So it's either 1650/75/1700 for gold & 32/.5/33 for silver. They need a round number.

 

[swissaustrian]

Boom. The easterbunny is alive!
Stock futures slide lower and pms take off after the bad US employment data.

 

[pmbug]

Is that a prediction, or are you seeing actual trading data somewhere?

 

[swissaustrian]

PM prices are here on the site now.
Dow futures down 160 points: http://www.forexpros.com/charts/real-time-futures-charts

 

[pmbug]

Yep. I see the updates now. Looks like PMs are up even though the dollar is too:

http://www.kitco.com/kitco-gold-ind...utm_content=20110215_KGX_tb1&utm_campaign=KGX

Nice.

 

[pmbug]

Boom. The easterbunny is alive!
Stock futures slide lower and pms take off after the bad US employment data.

ZH posits that PMs are up because the Indian jewelers strike is over:

http://www.zerohedge.com/news/gold-surges-indian-exports-resume-futures-slide

 

[Unobtanium]

Mainly DXY and helicopter Ben driven today, but also keep in mind that opex is tomorrow. So it's either 1650/75/1700 for gold & 32/.5/33 for silver. They need a round number.

Swiss, can you explain, why do they need a round number?

 

[pmbug]

Looks like they failed to achieve escape velocity last night.

 

[swissaustrian]

Swiss, can you explain, why do they need a round number?

I was referring to the options expiry in the post above.
Option prices are linked to a certain price level of an underlying good (in our case pms), called strike. If these options expire at or very close to the strike, they are worthless. The seller of the options (i.e. the bullion bank) keeps the premium (the initial price of the option). The strikes for standard (exchange traded) options are at round numbers (e.g. $ 1600/50/1700 for gold). That's why bullion banks have a strong incentive to manipulate prices of the underlying to a round number at options expiries. They preferably target the price level with the highest open interest (the biggest amount of contracts) of expiring options. Therefore all this counterintuitive behavior of pms at the end of each month. I've described this here in more detail:
Gold: http://www.pmbug.com/forum/f2/options-expiry-manipulation-gold-price-one-chart-229/
Silver: http://www.pmbug.com/forum/f3/silver-options-expiry-manipulation-one-chart-290/

 

[white&yellow999]

Looking pretty volitile right now in the global silver markets....

 

[white&yellow999]

Even ZH noticed the take off tonite...


http://www.zerohedge.com/news/gold-and-silver-go-vertical