Yesterday’s gold plunge another case of manipulation say some observers
A massive dump of gold futures contracts immediately ahead of U.S. market opening is seen as responsible for much of yesterday’s gold price plunge.
Posted: Wednesday , 16 Apr 2014
London (Mineweb) -
Yesterday’s gold price plunge which saw the yellow metal fall from the $1,320s down as low as the $1,280s at one time, before making a small recovery, is seen by some as yet another instance of gold price manipulation in support of U.S. Fed policies and the large fall in the US dollar which had taken it down to below the 80 dollar index mark – considered by some as a key level.
According to U.S. website, ZeroHedge, at precisely 8:27 am eastern Standard Time, COMEX saw a massive gold futures contract sell order. “This morning, shortly before 8:27 a.m. ET, someone decided that it was the perfect time to dump thousands of gold futures contracts worth over half a billion dollars notional. This smashed gold futures down over $12 instantaneously, breaking below the 200-day moving averaged and triggering the futures exchange to halt trading in the precious metal for 10 seconds.”
In the eyes of those who see a not so hidden agenda behind such trades, which seem to defy normal trading patterns, these big sales are designed to knock the price down through key trading levels – in this case below the 200 day moving average and thus trigger stop loss sales mostly implemented by computers without any direct human interventions.
True, the gold price had already been drifting down prior to the big sale, but the timing, just before the U.S. market open, was considered significant and has mirrored a number of other similar instances in the past.
Following the sharp fall, gold has made a recovery back to the $1,300 level with this morning’s London Gold Fix at $1299. But worrying for the gold bulls is that gold prices did remain weak in asian overnight trade before picking up again this morning in Europe, no doubt on further worries about escalation in the Ukrainian situation as troops moved in apparently to put down Russian-oriented unrest in the east of the country.