Submitted by Tyler Durden: UPDATE: Spot Gold $1426 (from $1564 highs Friday) As Asia opens to the bloodbath that occurred in precious metals on
Friday in the US, it would appear that more than a few traders got the
'tap on the shoulder'. Shanghai futures are limit-down and spot gold and
silver prices are plunging once again as we suspect forced margin-calls and the raising of cash (to cover extreme variation margin - or capital reserves) needed in JGB positions, as we explained here. Liquidation is certainly the theme of the evening - investors are selling JGBs (6th day in a row of multiple-sigma moves in long-dated Japanese bonds 30Y +56bps off its post-BoJ lows
at 1.60%!), selling Japanese stocks (Nikkei -128 pts, second biggest
down day post-BoJ), selling US Treasuries (futures down), selling gold
and silver (gold spot down over $100 from Friday's highs),
and despite selling JPY early (retracing 30% of the weakness post-BoJ),
JPY is practically unchanged (jerking lower only on the US futures open
and Asian equity open) - it seems Mrs.Watanabe is struggling and unwinding some her excessively short JPY and long NKY positions.
Which takes spot gold back to the 38.2% Fib retracement of the most recent low to high swing...
Tokyo COMEX Gold -9.2% (limit down) - looks like a giant post-BoJ roundtrip...
Silver ugly too...
Another day, another 4-sigma move in JGBs...
and post the China data...
- GDP Miss
- Retail Sales Miss
- Industrial Production Miss
- Fixed Asset Investment Miss
... everything is red - JGBs down, Japanese stocks down, US Stocks down, US Treasuries down, Gold and Silver down, Copper down, Oil down, Rubber futures limit down
Charts: Bloomberg
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