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COMEX Halts Gold Trading Twice In One Day After $200 Million Sell Trades

GoldCore's picture





 

Today’s AM fix was USD 1,248.50, EUR 929.64 and GBP 775.76 per ounce.
Yesterday’s AM fix was USD 1,271.50, EUR 939.69 and GBP 787.11 per ounce.

Gold fell $28.70 or 2.25% yesterday, closing at $1,244.70/oz. Silver slid $0.47 or 2.31% closing at $19.85/oz. Platinum dropped $22.80 or 1.6% to $1,389.00/oz, while palladium fell $9.75 or 1.4% to $708.25/oz.

Gold was trading near four month lows today after its biggest drop in seven weeks yesterday. Another bout of peculiar concentrated selling led to Comex halting trading in December gold futures twice yesterday, the fourth time in less than 3 months.


Gold in U.S. Dollars  and Suspensions Of COMEX Gold Trading - 3 Month (Bloomberg)

Minutes of the Fed's October policy meeting suggested that the Fed may start scaling back the U.S. central bank's $85 billion in monthly asset purchases at one of the next few meetings and this may have exacerbated the sell off. ‘Taper’ speculation remains rife despite the increasing likelihood of no taper due to the very fragile state of the U.S. economy.

Gold trading on Comex was interrupted twice, according to Nanex, which provides exchange data and summarizes high frequency trading activity. Thus, trading of gold futures were suspended twice yesterday and four times in the last three months as trading was also suspended on September 12, October 11, and now, November 20.

Nanex reported that about 1,500 gold futures contracts traded in one second at 6:26:40 a.m. Eastern time on Wednesday, triggering a $10 drop in prices and a 20 second trading halt.

Damon Leavell, a spokesman for the exchange said trading was halted at 6:26:41 a.m. New York time, for about 20 seconds. The December contract fell about $11 in less than a minute before trading was suspended.

Leavell declined to comment on the size of the trade that led to the halt. The “stop-logic” mechanism gives traders the opportunity to provide additional liquidity and prevent excessive price movements.

Immediately after the release of the Fed minutes, came another burst of selling which led to gold futures being suspended for another 20 seconds. The second bout of concentrated selling is believed to have been even more than 1,500 contracts. Each contract is worth 100 ounces so 1,500 contracts is worth nearly $200 million.

Myra Saefong of Dow Jones Marketwatch wrote on her blog that, "sudden drops in gold prices and temporary trading halts in gold futures on the Comex division of the New York Mercantile Exchange seem to be becoming the norm".

The timing was interesting as it came a day after news that Britain's financial regulator is looking into whether gold benchmarks could have been rigged. The Financial Conduct Authority has launched a preliminary review into the issue, a person familiar with the matter told Bloomberg.

It is believed the London gold fixing is one of the important benchmarks being investigated for rigging. The London AM Fix determines the spot price for physical gold and is set twice daily by a panel of five banks. Zero Hedge suggested that the price falls on the COMEX yesterday may have been due to official intervention, possibly by the Bank of International Settlements.


Gold in U.S. Dollars, 1 Year - (Bloomberg)

Some entity appeared determined to get the gold price lower and they succeeded - for now.

The peculiar trading action in gold again yesterday suggests that certain banks may be manipulating the gold price in the same way that they rigged LIBOR and are alleged to have rigged foreign exchange markets. If so, a key question is, are they manipulating prices purely for profit motives or is there an official sanction for such intervention as alleged by GATA for many years now and by Zero Hedge recently.

The bottom line is that such trading action makes traders on the COMEX very nervous to go long and prevents gold getting some momentum and animal spirits.

However, while price manipulations work in the short term, in the long term gold prices will be dictated by the real world forces of physical supply and demand forgold coins, bars and jewellery. The smart money is fading out the considerable noise regarding volatile intraday price falls and focussing on gold's importance as a long term diversification in a portfolio.


Investment Pyramid - (GoldCore)

It remains prudent to ignore this short term noise and day to day volatility and focus on gold’s importance as financial insurance and a vital diversification for all investors and savers today.

Support at $1,250/oz has been breached and gold is vulnerable of a fall to test support at $1,200/oz and the June 28th low of $1,180/oz.
 
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Thu, 11/21/2013 - 17:41 | Link to Comment steveo77
steveo77's picture
Breakpoint Trades World Market Review (FREE)

They let me post up some of their material once in a while, enjoy

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Thu, 11/21/2013 - 17:38 | Link to Comment Fast Twitch
Fast Twitch's picture

China is my guess. They are playing the West from both ends now. "We will destroy you with your own shitty paper machinations. We drive down your phony paper markets with your phony paper dollars, while we buy your hard assets at deep discounts from your own phony, make believe, shitty dollars". Too fuck'n funny / ironic / sad...

Oops! Was that my outside voice...

Thu, 11/21/2013 - 16:58 | Link to Comment CheapBastard
CheapBastard's picture

Every Urdu speaking person I know is buying Hand over Fist right now.

Thu, 11/21/2013 - 17:10 | Link to Comment robertsgt40
robertsgt40's picture

They don't call it FIX for nutin.

Thu, 11/21/2013 - 16:57 | Link to Comment SuperRay
SuperRay's picture

Yeah, and who shorted American Airlines and united airlines before 9/11? It's a mystery inside a riddle, wrapped in an enigma...

Thu, 11/21/2013 - 16:10 | Link to Comment Lmo Mutton
Lmo Mutton's picture

"Nanex reported that about 1,500 gold futures contracts traded in one second at 6:26:40 a.m. Eastern time on Wednesday, triggering a $10 drop in prices and a 20 second trading halt."

 

When it absolutely, positively has to be sold in one second....

Thu, 11/21/2013 - 15:17 | Link to Comment AngelEyes00
AngelEyes00's picture

QE adds pressure to raise the price of gold.  Since the value of USD's would plummet if gold rose too high, the Fed must short gold.  One goes with the other, i.e. if one is to QE, then one must also short gold or risk hyper-inflation.

I mean how could gold and or silver be going down in value?  Country's and people are loading up on the stuff like crazy.  I saw a bit on Max Keiser in which people are loading up on boxes of 25,000 dollars worth of silver.  They are selling like hot cakes.  So how is all this buying of gold & silver possibly going to reduce the value of precious metals?  It should be rising, but that means it must be shorted.

What will be interesting is once tapering does begin, if the interest in acquiring gold goes down and with it the need to short the price.

 

Thu, 11/21/2013 - 14:34 | Link to Comment ActionFive
ActionFive's picture

Is it not obvious since QE infinity that they had a plan for pm?

They have divested themselves of gold and they rule the lawless 'market'.

BTW- ZH ran the 'gold needs official QE to move again' meme all along.

Expecting the 'gold selling to buy bitcoin' meme here anyday.

Thu, 11/21/2013 - 16:40 | Link to Comment mvsjcl
mvsjcl's picture

Yep. Wheels within wheels.

Thu, 11/21/2013 - 14:32 | Link to Comment devo
devo's picture

Gold bugs "backing up the truck" to load it with falling knives.

Thu, 11/21/2013 - 14:50 | Link to Comment Ban KKiller
Ban KKiller's picture

Well...silver in my case. Why? Well my "money" is not going into banks, for Cyprus reasons, Spain reasons, Portugal, et. 

Thu, 11/21/2013 - 15:16 | Link to Comment devo
devo's picture

I hear you; it is punk rock to get money out of banks.

 

Thu, 11/21/2013 - 14:49 | Link to Comment daveO
daveO's picture

Banks can only manipulate until they run out.

Thu, 11/21/2013 - 17:10 | Link to Comment Four chan
Four chan's picture

its on purpose, the system called the fed reserve is designed for this and over 100 years it has been a great success. 

enslave a free peoples to debt and capture every asset through boom and bust the system creates from debt created out of thin air. 

TREASON

Thu, 11/21/2013 - 14:30 | Link to Comment RaceToTheBottom
RaceToTheBottom's picture

I believe there was some posts about fine print that the US does not consider buying and selling Gold as manipulation and says right up front that they will be doing this.

This includes derivative buying and selling.

They will continue doing this until they see a reason to stop doing this.

With the sizes of the sells and the careless attitude to proper selling, who else could this be?

Thu, 11/21/2013 - 14:21 | Link to Comment Seeking Aphids
Seeking Aphids's picture

Gold is a store of value for people (not sheep) who do not trust their own government to stop currency debasement.......is this such a silly idea? Look at the value of $1 compared to 50 years ago and you will get the picture.........where do you keep your money, Safely? Do you let it simply lose value over time? Is it invested in the stock market where it is subject to asset bubbles thanks to QE? Under a pillow? Seriously, what alternative do we have? Bitcoins??

Thu, 11/21/2013 - 14:57 | Link to Comment The Abstraction...
The Abstraction of Justice's picture

Most advisors will tell you to have cash alongside precious metals. No reason why that cash is not in bitcoins.

Thu, 11/21/2013 - 15:59 | Link to Comment fonestar
fonestar's picture

Yes, perhaps besides the fact that even people who should know better bungle backing up and storing files.

Thu, 11/21/2013 - 14:18 | Link to Comment Diogenes
Diogenes's picture

Who is behind these beat downs? Don't the exchanges know who their customers are? Can't they find out who is placing these orders? Why all the secrecy?

Thu, 11/21/2013 - 16:44 | Link to Comment tenpanhandle
tenpanhandle's picture

As for the current paper gold dumps, China and GoldmanSuks wanted to pay less for Venezuela's 200 tons of gold and that fits right in with the ongoing offensive against gold. 

The pain being inflicted on holders of gold is an attempt to bleed as much physical out of hoarders and get as many contracts unprofitable so Comex / LBMA do not default on the December contract. As well, China is after the final amounts of physical gold available to buy with $'s and is most likely participating in the bleeding out of the cut up phys holders.  Death by a thousand paper cuts was taking too long thus the razor slashes of 2013.

Thu, 11/21/2013 - 14:50 | Link to Comment Sofa King Confused
Sofa King Confused's picture

Because if they tell who it is everybody will know it's all rigged.

It's the US Treasury.

Thu, 11/21/2013 - 14:04 | Link to Comment novictim
novictim's picture

LOL BUY GOLD!! LOL

Thu, 11/21/2013 - 16:59 | Link to Comment fonestar
fonestar's picture

They'll be lining up around the block trying to sell their gold, jewelry, farmland and other useless crap to people like Simon Black and Jeff Berwick for a couple satoshi.

Thu, 11/21/2013 - 17:59 | Link to Comment Bay of Pigs
Bay of Pigs's picture

And why are you and your little 11 week troll above worried about the price of gold again?

Seriously, you guys are looking worse all the time around here to me. And I'm not talking about Bitcoin at all, but you as people. Proud, boastful, arrogant, condescending, spiteful, etc...just fucking disgusting.

Thu, 11/21/2013 - 18:36 | Link to Comment fonestar
fonestar's picture

Well I can only speak for myself but I'm not worried about the price of gold.  Don't care too much how I look either.  But I do care about some of the greatest and most revolutionary ideas of our time being dismissed out of hand and mocked.  I won't forget it and we will continue to laugh at the expense of the monkeys who chose to remain in the tree, emboldened by the passing hour.

Thu, 11/21/2013 - 14:03 | Link to Comment Watauga
Watauga's picture

$5000 gold by the end of 2016.

"Gold bitchez."

Thu, 11/21/2013 - 16:11 | Link to Comment ebear
ebear's picture

Jim?  Is that you?

Thu, 11/21/2013 - 15:57 | Link to Comment fonestar
fonestar's picture

"$5000 gold by the end of 2016."

 

How many satoshis is that by the end of 2016?

Thu, 11/21/2013 - 14:36 | Link to Comment TheReplacement
TheReplacement's picture

That's all fine and well but what will brass and lead be worth?  My bet is the return on the latter is higher than the former.

Thu, 11/21/2013 - 13:46 | Link to Comment MFLTucson
MFLTucson's picture

The rigged fraud run by the American gangsters!  We are a country run on deception and fraud, this goverment has abandon anything proper or fair!

Thu, 11/21/2013 - 13:41 | Link to Comment lasvegaspersona
lasvegaspersona's picture

Traders on the Comex will get what is coming to them good and hard.

If you want gold go to a coin store or use an online seller.

If you want to bet on the price of gold use Forex AUX/USD...not sure it is legal for US citizens though. The Forex market is at least 10 times the size of the Comex and is when most (paper) gold is bought and sold.

Thu, 11/21/2013 - 10:32 | Link to Comment Nothing but the...
Nothing but the truth.'s picture

This just confirms that the markets have been taken over  by Zombies. If anything should be collapsing right now it's all those QE force fed assets that are screaming huge fucking bubbles. Yet PM's get hammered - is this the new normal they speak of ?

Thu, 11/21/2013 - 14:44 | Link to Comment SafelyGraze
SafelyGraze's picture

dear comex,

please stop halting gold trades

let the price drop to its natural statutory limit of 42 dollars an ounce

that way, everybody who has 42 dollars can buy an ounce of gold

mostly for necklaces

http://static.dnaindia.com/images/cache/1911151.gif

http://www.elle.be/fr/wp-content/uploads/2013/10/janet-yellen1.jpg

and biometric brooches

http://upload.wikimedia.org/wikipedia/commons/7/78/Janet_yellen.jpg

hugs,
misteryellens

rp: is gold jewelry?

misteryellens: no. it's something people hoard for tailrisks 

Thu, 11/21/2013 - 17:01 | Link to Comment DaveyJones
DaveyJones's picture

the gold manipulators are the chiropractors of the finance world

when they press down, it works for a short time

but it doesn't solve the problem 

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