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Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012

Posted By admin On September 1, 2012 @ 2:46 am In Money Watch | Comments Disabled

Zero Hedge [1]
Sept 1, 2012

A very noisy gappy day with much larger volume than in recent days (which all dried up in the afternoon session until the close – for the heaviest volume day in a month) in US equities. European comments lifted us early in a correlated-risk-on manner until Bernanke’s speech which hit markets like a meteor – stops were run up and down – but by the close equities and the USD ended fractionally lower from pre-Ben (notably up on the day to save the month for the Dow), Gold considerably up from pre-Ben, Treasury yields down notably from pre-Ben. Near six-month highs in Gold and five-month highs in Silver were the real movers today – with their largest gains in two months. VIX ended marginally lower at 17.5% (-0.3vols); credit was very thin today and tracked stocks in general (though less volatile); USD ended the week -0.5% which matches Oil’s +0.5% on the week as Copper underperformed. Silver has overtaken Stocks as the Year-to-date winner once again…

Gold vs Stocks vs USD vs Treasury yields… (arrows from pre-Ben to close)…7Y closed under 1%

Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012  20120831 EOD2 0 [2]

 

left Gold and Silver at multi-month highs…

Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012  20120831 EOD1 0 [3]

 

Leaving Silver the winner YTD…

Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012  20120831 EOD5 0 [4]

 

Stocks were a mess all day post-Ben – especially the afternoon noise…but closed at VWAP – amid very heavy volume (month-end and all) but seemed to echo the last Friday buying. We closed at the low volume node (left hand distribution) of the recent range – having auctioned up early on, suspect we test back down by Sunday night…

Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012  20120831 EOD3 0 [5]

 

It’s month-end and the need to exit sizable positions was clear above but the last few minutes were quite fascinating in terms of the Algos In Action. Someone needed to dump a lot so they emplyed the ‘tickle’ algo to lift on low volume but higher block size, gradually wiping out the stack of orders encouraging a trend, getting followers to buy-in (as the crowd sees rising block size into and above VWAP – though not massive volume we should note), then flush their big block well above the start of the startegy – with any luck somewhere around VWAP…

Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012  20120831 EOD7 0 [6]

 

Dow Transports end the month down 1.6%, The Dow managed to creep off unch todayt to make another green month but the NASDAQ was the big winner (thank you AAPL) as it ended the month up almost 5%…

Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012  20120831 EOD4 0 [7]

 

Charts: Bloomberg

 

Bonus Chart: Facebook Is Barely Legal…

Gold Soars To Near Six Month High As Silver Overtakes Stocks In 2012  20120831 EOD6 0 [8]


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[1] Zero Hedge: http://www.zerohedge.com/news/gold-soars-near-six-month-high-silver-overtakes-stocks-2012

[2] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/08-2/20120831_EOD2.png

[3] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/08-2/20120831_EOD1.png

[4] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/08-2/20120831_EOD5.png

[5] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/08-2/20120831_EOD3.png

[6] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/08-2/20120831_EOD7.png

[7] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/08-2/20120831_EOD4.png

[8] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2012/08-2/20120831_EOD6.png

[9] Late-Day “Panic” Leaves Stocks With Worst Month Since May 2012: http://www.prisonplanet.com/late-day-panic-leaves-stocks-with-worst-month-since-may-2012.html

[10] Oil Jumps to Two-Year High, Gold Reaches $1,400 on Mideast; Stocks Decline: http://www.prisonplanet.com/oil-jumps-to-two-year-high-gold-reaches-1400-on-mideast-stocks-decline.html

[11] Gold Gains as Dollar Weakens on Fed; Silver Reaches 30-Year High: http://www.prisonplanet.com/gold-gains-as-dollar-weakens-on-fed-silver-reaches-30-year-high.html

[12] Gold:Silver Ratio Falls as Silver Rises: http://www.prisonplanet.com/goldsilver-ratio-falls-as-silver-rises.html

[13] Gold rises near 4-month high: http://www.prisonplanet.com/gold-rises-near-4-month-high.html

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