Manipulative Gold ‘Fat Finger’ Or Algo Trade Worth 1.24 Billion USD
Our friends at GoldCore.com weigh in on the strange, "out-of-the-blue" dip yesterday, Monday, April 30 in an important blog post this Tuesday morning. GoldCore writes:
Gold’s London AM fix this morning was USD 1,661.25, EUR 1,253.02, and GBP 1,024.70 per ounce. Yesterday's AM fix was USD 1,662.50, EUR 1,256.61 and GBP 1,021.44 per ounce.
Gold 3 Day Chart – (Bloomberg)
The gold market was briefly shaken by an unusually large early morning sell order, which triggered a brief trading halt in gold futures and left traders questioning whether the transaction was a mistake and the motivation of the seller.
Gold fell $14 in one minute despite no breaking financial and economic news and despite no movement in the dollar, oil, equity or bond markets.
CME Group Inc's Comex division recorded an unusually large transaction of 7,500 gold futures during just one minute of trading. The sale took out blocks of bids as large as 84 contracts in one fell swoop and cut prices down $15 to $1,648.80 a troy ounce.
The sharp losses triggered a 10-second trading halt in June-delivery gold futures.
The massive size of the transaction - 750,000 troy ounces worth more than $1.24 billion – led to speculation that it was either a mistake by a trader or that an entity wished to manipulate the market lower.
Silver is trading at $30.85/oz, €23.37/oz and £19.10/oz.
PLATINUM GROUP METALS
Platinum is trading at $1,570.00/oz, palladium at $677.60/oz and rhodium at $1,350/oz.
To read the entire post follow the link below:
May 1, 2012 (Source ColdCore)