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Price Suppression Theory Mainstream After Single $650 Million Sell Trade
Today’s AM fix was USD 1,255.50, EUR 929.59 and GBP 787.79 per ounce.
Yesterday’s AM fix was USD 1,276.00, EUR 941.49 and GBP 799.50 per ounce.
Gold inched up $2.50 or 0.2% yesterday, closing at $1,272.70/oz. Silver slid $0.03 or 0.14% closing at $21.26. Platinum climbed $12.80 or 0.9% to $1,376.50 /oz, while palladium rose $0.09 or 0% to $711.59/oz.
Gold In USD, 3 Days - (Bloomberg)
Gold snapped a four day losing streak yesterday but is under pressure again today. Gold traded in a narrow range overnight prior to aggressive selling that saw gold fall to $1,255/oz. Gold is hovering near three month lows despite the political shenanigans and impasse in Washington.
Gold, whose safe-haven appeal is usually burnished during times of geopolitical and economic uncertainty, has failed to gain despite protracted wrangling over the fiscal deadlock in the United States.
It has dropped about 5% towards $1,250/oz since a partial government shutdown began on October 1 and this is, in conjunction with frequently strange trading patterns is leading to deepening concerns about price suppression.
The massive single sell trade on Friday, estimated to be worth a staggering $650 million, which knocked prices $25 lower in three minutes and the poor performance of gold despite the appalling political chicanery in Washington and the U.S. fiscal and monetary position is leading to more questions regarding price manipulation and suppression.
Alex Rosenberg, a producer at CNBC (click on link for story) wrote the following:
“Gold dropped $25 in two minutes Friday morning following what appeared to be a single massive sell order, and professional traders are now pronouncing the sale a deliberate attempt to manipulate the market.
At 8:42 a.m. ET Friday morning, a firm appeared to sell 5,000 gold futures contracts "at the market," meaning at whatever price was available. The massive order was more than the market could take at once and led the CME to automatically halt trading for 10 seconds.
Eric Hunsader of Nanex told CNBC.com on Friday that 2,700 contracts were sold, which triggered the halt, and that the remaining 2,300 were sold once the market resumed trading.
Since one futures contract controls 100 troy ounces of gold, and each troy ounce was worth $1,285 at the time of the sale, this party was selling some $640 million worth of gold in one shot. And it overwhelmed the liquidity in the market.
"Anyone with knowledge of the size and volume in the market would absolutely never, ever place a 5,000 [contract] sell [order] at market, because you could not estimate the offset price," said iiTrader CEO Rich Ilczyszyn.
If Ilczyszyn's firm were placing the order, he said, "we generally would piece the order in to work a better price." That's why he believes the trade was "an error."
Jim Iuorio, managing director at TJM Institutional Services, sees similarities between what happened to gold Friday and what happened Sept. 12, when a big gold sale at 2:54 a.m. ET similarly caused a trading halt and hurt the market.
"There is only one conclusion that seems logical regarding Friday's gold trade and the one from a month ago, and that's that they were designed to manipulate prices," Iuorio said. "They were slightly different, in that the one from a month ago was done when the market was illiquid in order to get the biggest prices movement. Friday's was done around the opening to ensure that there was maximum visibility."
Gold In USD, 20 Days - (Bloomberg)
Meanwhile in Australia, Robin Bromby, veteran finance journalist, author and publisher wrote in The Australian (click on link for story) below:
OCCASIONALLY it's useful to be reminded that not everything in the metals markets revolves around China.
That country has an interest in lower gold prices (making it cheaper to buy up much of the world's supply) but Beijing seems unlikely to have been involved in "unusual" events on Friday in New York. Out of the blue, just after the opening at Comex, there was placed a sell order covering two million ounces, an order so big it triggered an automatic 10-second trading interruption (and a $US30 an ounce fall in the metal's price).
If you were to round up the usual suspects, your first instinct would be to pull in the Federal Reserve and other central bankers along with the funds that do their bidding. After all, gold is the enemy of the money printers. The more money being created out of thin air, the more people trust those yellow bars.
There was a huge order unloaded on October 1, too, and then we had that episode in April when, within two hours, 13.4 million ounces was unloaded through Comex. Someone is determined to knock the stuffing out of gold.
Gold in US Dollars 5 Years with Support and Resistance - (Bloomberg)
Gold’s price falls are very counter intuitive and suggests that Wall Street banks, either independently or in unison with the U.S. authorities possibly through the Working Group On Financial Markets or the Plunge Protection Team, are suppressing gold lower.
This appears to be being done through manipulation on concentrated selling on the COMEX.
The Gold Anti Trust Action Committee’s (GATA long asserted claim that gold is being manipulated in order to maintain faith in the dollar and erode confidence in gold as a safe haven is looking more and more plausible by the day and appears to be going mainstream.
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Being on ZH I'd have thought you knew better than freely being tracked by Google, Facebook, NSA, etc.........
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4. Enjoy all websites without adverts and being tracked
5. Send me 1oz of silver for my trouble
Please copy and paste the above comment to save time the next person asks
As others have stated before, I use Firefox which has Adblocker.
But I do see the heavily nested comments get so narrow, sometimes they get to one to 5 characters wide, essentially unreadable. I am not sure others have that issue.
I actually consider the nested comments problem a feature, as threads quickly go from on-topic replies to chat sessions. So I scroll past anything that isn't roughly less than four levels deep.
Also, if Adblocker isn't sufficient, NoScript will stop everything on the browser side.
This is the same thing zionist jewish bankers did in Germany from 1919 to 1924.. By means of bankrupting the entire country they were able to plunder as much as they could..
Now i see the deplorable economic conditions in USA meanwhile only wall street zionist banks are making profits..
It's like madness.. They did it again..
Bah, that's simply a 'cohencidence'
QE money is obviously being used to suppress gold, and QE makes it easier to do so, because the primary dealers get it first and they are all securities arms of the investment banks.
The stock market has been in never-never land since QE rolled out. Not sayin it wasen't before the crash, but now its madness and outright fucking manipulative fraud.
Please God, don't let it be my pension fund manager.
Every time they bash it, the more important it becomes for me to get more...
The SEC and AG are all over this case.
Schneiderman is too busy looking over the SEC's shoulders at the pron to acknowledge this "anomoly".
Ok. So why doesn't GATA or somebody start a futures to physical fund? Raise a couple billion and just buy the futures and exercise for delivery?
Because if you do, you're gonna get Corzined, just like Celente did.
Remember, MF Global was the long-established, trustworthy platform to execute that trade. Once it was taken down with impunity, exactly what entity would be left to trust?
Yeah, not like they will threaten you or your loved ones with physical harm or anything.
/s
as noted to many people many times...
having thusly capitulated, you have handed 'them' victory and cheaply.
The issue is akin to the massive NSA eavesdropping, tracking, recording, and data processing center in Utah. That site could be filled with empty buildings, but now that 'they' (and Snowden etc who could all be shills) have told everyone that it exists and what they have done and what they are capable of...everyone now assumes that it does exist and that the NSA is nearly capabable of reading your very thoughts.
This belief has already curbed behavior on a mass scale, and that is precisely the objective, and one way or the other it has been achieved. Check and mate.
Has it really curbed behavior? With whom?
I posit that it has quite the opposite effect. Nobody chucking fencing on the White House lawn seemed too worried about surveillance.
Oh Dear God, Please stop the government shutdown soon so our diligent champion, Bart "The 'Do" Chilton can quickly return to his valiant work of protecting the ordinary investor from these dastarsly manipulators. Please answer my prayers, Sovereign Lord, so that Bart can help us to return to fair markets swiftly.
What was that Lord? You say he was actually "on duty" all the other times that gold was smacked down? And you're telling me that he's not a champion of the people, but just another shill for the banksters? And he will burn in eternal torment for playing "Good Cop, Bad Cop" with Gary Gensler? Really???!!!
"Jeeze Louise!!!"
Almost missed that sarc tag at the end.
buying with both hands, ty suppression team
The surest way to lose money trading is to bet against the big players. If the whales are going short, you're a fool to go against them. I learned this lesson the hard way - over 35 years of trading. I will gladly step aside and watch the explosion from a distance.
WHEN ELEPHANTS FIGHT, THE GRASS GETS TRAMPLED.
Gold is just a passing fad. Time to move on to something worthwhile.
/s
Yes, like the Twitter, FaceBook, or GroupOn IPOs.
Like CDS on US debt?
No, Like strike anywhere matches so you can use all of that monopoly money anywhere for warmth.... Even in hard to reach areas like bank vaults, where some of are going to have to hide when the zombie hoards come out to play when the SNAP cards go to zero and make the the hoards go SNAP
cool line in a movie where the guy whips a big wad out of his pocket rips a bill off and uses it to start his Hobo Fire...
Cheers for coining the term "Hobo Fire". It made me smile. A hobo fire (Hobo Fire?) sounds comforting.
delete