Latest Gold ‘Flash Crash’ Leads To Questions Regarding Manipulation

GoldCore's picture

Today’s AM fix was USD 1,237.50, EUR 907.92 and GBP 754.44 per ounce.
Yesterday’s AM fix was USD 1,238.00, EUR 909.56 and GBP 756.54 per ounce.

Gold climbed $2.40 or 0.19% yesterday, closing at $1,238.80/oz. Silver rose $0.01 or 0.05% closing at $20.17/oz. Platinum climbed $4.26, or 0.3%, to $1,413.00/oz and palladium rose $9.50 or 1.3%, to $734.25/oz.

Gold in U.S. Dollars, 3 Day - (Bloomberg)

Gold has continued to recover from yesterday’s latest peculiar ‘flash crash’ when gold futures plunged more than $30 at 15:14 a.m. GMT on Monday, before regaining nearly all of that drop within the same minute. Gold remains just under a three week high in London and appears to be consolidating after the 2.9% gains year to date.

Gold futures sharp $30 drop or 2.5% in seconds, from $1,247 to below $1,215, on 4,200 contracts triggered yet another trading halt - this time of ten seconds. The trade occurred fourteen minutes after economic data was released on U.S. factory orders and ISM services index data.     

Gold in U.S. Dollars,  30 Days - (Bloomberg)

The flash crash had the hallmarks of price manipulation.  It is nearly impossible to tell and the sell off could have been a fat finger trade or a large fund or bank liquidating a gold position.

However, given the degree of market manipulation that banks have been found guilty of in recent months (Libor, foreign exchange etc), manipulation is a real possibility. In order to protect investors and the integrity of markets, regulators internationally should again investigate the gold futures market where such manipulation appears to be taking place nearly on a weekly basis now.

This week’s key drivers of the gold market may be the U.S. FOMC minutes released on Wednesday and the December jobs data out on Friday.

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disabledvet's picture

it's manipulated all right...IN THE UPWARD DIRECTION you worthlessly retarded dipshit. The SNB just got bankrupt by California this week..."and all they want if more gold." i don't know about the Swiss over there but the ones over here are dairy farmers...hardest working people you will ever meet and worth more than that worthless "state for Bankers" and lunatic fringe paranoia. here's what real money looks like: SUCK MY TESLA LOVING COCK ASSHOLES. EAT SHIT AND DIE!!!! (because as they say in transportation 101 "it's all in what you bring back.")

DeadFred's picture

The term "latest gold flash crash" aims at a fast moving target. It will all stop when the Chinese buy the last bar.

wagthetails's picture

there won't be inflation until banks  lend, which will not happen.  so we have possible years of this defaltionary pressure on gold...but eventually the printing, which doesn't push inflation, will lead to total collapse in the faith of the dollar...hello hyper inflation.  i wouldn't be suprised to see another 20% down year.  But go out 5-10 years?... it could be several times today's price. 

fijisailor's picture

I think it's safe to say that gold will not dip below $1187 unless there is a major market meltdown and some big banks go under.

Lordflin's picture

Went to bed, silver was at 20.32, woke up to find it at 19.78... market back up... of course if there was any reality to the market silver would be firing up as well as it has extensive industrial use.

What else's new? I am tired, frankly,of even commenting on the activities of these thugs...

I suspect things will come to a head this year. Millions of illegals will be given the vote insuring that we no longer have access, assuming we had, to the ballot box... This is, of course, happening throughout the world... Unemployment and under employment will continue to flourish... Folks will lose their health insurance by the millions, while at the same time their taxes will continue to climb... Both directly, and in directly through inflated costs of basic goods. A draconian police state will continue to encroach on people's lives... Making arrests over absolutely absurd things... A six year old child kisses a little girl... sexual assault... A young woman throws a slice of pizza at her boyfriend... domestic violence... A man has unpaid parking tickets, dead at the hands of a swat team...

The future... world war, revolution, or death at the hands of a self appointed, psychopathic, ruling elite... take your pick.

And btw... Happy New Year!

LawsofPhysics's picture

Thanks, personally, with 7+ billion idiots, and growing, I remain long physical assets of all sorts, arable land, and a dependable tribe.

Create all the imaginary credit/money you want, the calories available for consumption that are required to actually do/create anything of real value, are what they are.

NoWayJose's picture

The curious thing I have always wondered about is that the brokerages always seem to know every trade I make and how much I gained (or lost) so that they can report it to the IRS.  It would seem that there must be some electronic trail of which account/market maker/big bank/brokerage etc is placing these orders.  Why is it so hard for the SEC to find this, or if it doesn't exist - then why don't they make Wall Street keep this information?  In an alleged manipulated world, free from any prosecution, the only answer is that the SEC has been told to NOT look for or at this information.

Bastiat's picture

Got to keep up the show for ole yellen.

agent default's picture

When you have 70 paper ounces for every physical ounce of gold in the market, this market is by definition manipulated.  What more evidence do you need?

Urban Roman's picture

More like 80 last time Jesse posted a figure. The claims per ounce are going asymptotic as the divisor heads toward 0.

Citxmech's picture

If that's true - the coming break is going to be absolutely epic.

Yardfarmer's picture

i have become so jaded as to the paper tag they hang on bullion every day that i almost failed to notice the flash crash that wasn't. aside from the ludicrous assertion that a fat finger keyboard stroke was the culprit (yes, that is how Kitco's Wycoff along with many others interpreted the decided anomaly) and in light of the mega dump that occurred at $1900, and the limited scope of this pathetic exercise, it seems likely that the predatory excursions by the Fed pirates into their COMEX pond are indeed coming to an abrupt and welcome end. They've simply run out of ammo and the smart money knows it as even a cursory perusal of the COT charts confirms the literal seismic shift that has taken place into long positions by the large funds.

El Hosel's picture

"Manipulated"?....  Give us a break man. Its Fraud, its Market Rigging, its Lying, its Cheating, its Stealing.  

"Protect the integrity of the Markets", where the Fuck have you been? The Integrity is all Gone and has been for years, wake up already.

eddiebe's picture

They just couldnt be manipulated, it wouldnt be fair. Jeezus, who are these idiots?

Winston Churchill's picture

Stop bitching, bitchez.

Buy , like China.

RaceToTheBottom's picture

Why will China be any different? 


  • Does it not have a central bank?
  • Does it not believe in fractional lending?
  • Does it not believe in Keynesian economics?

I am starting to believe that China would act just like the US FED, maybe even selling the bars back and forth in some bad theater show....

The issue is not who it is but how they view gold or more accurately how they view economics, and China views economics the exact same way the US does...  All non austrian economics are in a war with Gold.

Racer's picture

What do you mean weekly basis? More like every day

digitlman's picture

Wanna know a secret?


*ALL* markets are manipulated.


The shit show must go on.

Oracle of Kypseli's picture

We can only win, if we collectively buy all the available physical and take delivery.

MeelionDollerBogus's picture

and also establish our own markets for pricing essential goods & services USING that metal.

Deo vindice's picture

Oracle - one way that we can all do our part is to not buy 'stuff' for gifts for friends and family. Give them PM's instead.

LawsofPhysics's picture

Clear, concise and to the point.  Nice work OofK...

Personally, with 7+ billion idiots, and growing, I remain long physical assets of all sorts, arable land, and a dependable tribe.

Deo vindice's picture

Protecting the integrity of the markets? Really now.

Isn't "market integrity" an oxymoron?

How do you protect something that doesn't exist?