Manipulated Market: Monday’s Gold Flash Crash
The spike in USDJPY and Treasury yields pretty clearly looks to be a consequence and not a possible proximate cause here.
You’ll recall that around 4 a.m. EST, gold plunged $18 in seconds on surging volume falling from 1,253 to test 1,236, the 200-DMA:
Here’s Nanex with their always colorful look inside the Matrix:
18,149 lots traded at ~9am on Comex in New York, compared with 2,334 lots at ~10am.
“No-one has a clue, apart from the unfortunate individual that pressed the wrong button,” David Govett, head of precious metals trading at Marex Spectron Group in London, told Bloomberg by email, adding that “thinner liquidity, increased use of algorithmic trading could exacerbate such moves.”
Do you honestly believe this... 1240 was a crucial level for gold on many levels. It was the 5 leg of a rally to breakout bounce from a 7 year long downtrend. This obviously was orchestrated.
“These moves are going to become more widespread with the way things are going and the more they happen, the worse they will become as people back away from holding positions,” Govett went on to warn.
Other traders, Bloomberg notes, also pointed to a so-called fat finger trade.
Guys, if you have studied the markets, the economy, with a skeptical mind, how can you not put 1 and 1 together?