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Gold “Price” Spikes to $1,467.50/oz on Computer Glitch?
Gold “Price” Spikes to $1,467.50/oz on Computer Glitch?
Gold spiked higher in many price feeds overnight and was $270 higher or more than 22% higher to $1,467.50/oz at one stage in what appears to have been some form of computer glitch.
There was speculation that the price spike which came while the COMEX was closed for 30 minutes was due to a series of charting errors or misprints, a bad price feed or a computer glitch. Another example of how technology is a great enabler but can also be a great disabler.
Despite a very bullish backdrop of the Swiss gold referendum on Sunday, gold repatriation movements in Europe, Russian central bank gold buying and very robust Indian and Chinese demand, there was no breaking news that would justify such a dramatic uptick in gold.
The “usual suspects” were a fat finger trade by a large hedge fund or bank. This was quickly discounted as the price moved higher in a series of trades over a period of minutes rather than in one or two trades.
A classic example of this was the huge fat finger trade that brought Knight Securities to their knees. In 2012, US market-maker Knight Capital Group almost went bankrupt after it lost more than $450 million when its computers made erroneous orders that couldn't be undone. The firm was later sold.
Another example of this was last month, when Japan's stock markets crashed after a trading error caused more than $600 billion or £370 billion, (yes billion!) worth of orders to be made and then cancelled. An anonymous broker entered an over-the-counter trade for 42 ‘blue chip’ stocks before swiftly cancelling it.
Of note was the fact that silver and the other precious metals did not see any movement despite the apparent surge in gold. Nor did other markets.
We had concerned clients on the phone early this morning wondering if a massive short squeeze had begun. Others wondered whether price manipulation was at play. Understandable concerns given events of recent weeks and months and the increasing lack of trust in large market participants and indeed in financial markets.
Having looked at it and spoke to data providers we believe that this may have been a computer glitch. It was not manipulation, a short squeeze, or a modern Chinese or Russian ‘Goldfinger’ sending a pointed message to Washington.
The problem may be related to one of the exchange's trading engines. Although the systematic nature of the price moves higher did suggest that there was a degree of coordination and an intelligence behind the price move higher.
This is not the first time that something like this has happened. The CME halted trading for some futures contracts for more than 90 minutes on April 8 this year due to “technical issues.”
The nature of the “technical issues” were not disclosed.
Such “glitches,” if indeed there are glitches, are becoming more frequent and larger in size and pose real risks to investors. It underlines the importance of owning physical gold and avoiding paper gold - especially leveraged paper and electronic gold which can be manipulated and subject to such errors.
It is also shows, financial markets are increasingly subject to technological vulnerability.
Intelligence agencies, governments and internet security experts have warned that a cyber war could see hackers, attempt to disable and take down financial markets and exchanges in a new form of warfare - financial warfare.
Security experts say China, Russia, the U.S. and other states are adept at and becoming more sophisticated at cyber espionage, cyber warfare and financial warfare.
There is no speculation that this latest glitch was cyber terrorism or war. However, it underlines the risk posed to financial markets and hence the importance of owning physical bullion coins and bars.
Get Breaking News and Updates On Gold Markets Here
MARKET UPDATE
Today’s AM fix was USD 1,195.75, EUR 960.67 and GBP 760.22 per ounce.
Yesterday’s AM fix was USD 1,202.25, EUR 966.59 and GBP 767.04 per ounce.
Spot gold closed slightly higher yesterday at $1,200.77/oz, as did spot silver at $16.68/oz.
Gold in USD - 5 Days (Thomson Reuters)
In London late morning, spot gold was down 0.4% at $1,195.90 an ounce. Silver was down 0.4% at $16.64 an ounce, while platinum was up 0.4% t at $1,229.49 an ounce and palladium was up 1.4% at $807 an ounce.
Currency wars are set to deepen as central banks continue to attempt to weaken their currencies.
The ECB is talking about possibly beginning to buy sovereign bonds in early 2015. This is putting pressure on the euro and strengthening the U.S. dollar against the euro. While the BOE continues its extensive QE programme and the BOJ has embarked on a massive QE programme.
Silver in USD - 2 Years (Thomson Reuters)
China's net gold imports from Hong Kong reached a seven-month high in October, according to official Hong Kong data released yesterday. Shanghai Gold Exchange (SGE) premiums are running at $1 to $2 due to demand from buyers in Asia.
Bloomberg noted that gold-backed exchange-traded products (ETPs) dropped 1.1 metric tons to 1,616.7 tons as of yesterday, falling for the first time in three sessions and are approaching a five-year low. Weak hand, sentiment driven ETF owners are selling to allocate to equities and some ETF owners are opting for the safety of physical gold.
Gold has been rallying in November to date, advancing over 2%. We are surprised that it is not higher given the backdrop of the Swiss gold referendum, the gold repatriation movements and Russian, Indian and Chinese gold demand.
Smart money is accumulating bullion now in anticipation of higher prices in 2015 and in the coming years.
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There were many anomalies in gold such as this only a few years back.
Fake prints.
I always thought it was deliberate signalling to insiders.
You see it (not as much anymore) on the business news shows also, BNN cnbc.
This spike is precisely the kind of phenomenon I would expect to see at the end of the current cycle of manipulation. The overwhelmingly strong physical demand is like a rising water level breaching a dam....nothing to see until it hits the top and then nothing to do as the water simply flows over. Are these the first drops? All imho.
There were many anomalies in gold such as this only a few years back.
Fake prints.
I always thought it was deliberate signalling to insiders.
You see it (not as much anymore) on the business news shows also, BNN cnbc.
I saw it on Galmarleys website yesterday. And the price rose in steps, ..... computer glitches don't do that. There is something rotten in the state of Denmark.
So...COMEX closes for 30 minutes, gold shoots up. COMEX reopens, gold crashes back down.
Just think what we could find out, price wise, if the COMEX wasn't there controling everything.
[Regarding the supposed failure of the parabolic antenna on the ship, which HAL himself falsified]
HAL: It can only be attributable to human error.
An American, not US subject.
Life goes on... --Joe Barcelona
that's no glitch. it's just my fill at $1467.50. no manipulation here. now it can go back to $1233. SOP at COMEX
$1467 spike=spasm of truth?
Yes, as there were buyers, PT Barnum certainly rings a "spasm of truth".
I used to trade GC futures, but 8 or so months a there was a 40 buck spike and I said shit, that is a good way to blow you own ass up in seconds. But this kinda move would lay down a nasty rash to anyone on the wrong side of it.
(Phone rings) Caller ID say MARGIN CALL.
Quick, run....
is this what jamie's daughter wanted a tip on?
I have a DDE feed and an XML feed from Bullion Desk.
I actually called them at 5:45 pm EST yesterday when the market was rocketing upwards to confirm that they are legitimate trades. They were as far as they are concerned.
The price did not shoot straight up, it was moving in 20 - 30 cent increments upwards after the initial $150 jump. It was definetaly program trading, I could see every bid/ask go through.
This was emailed out to me at 6:09 pm:
I'm sure you've noticed that price bounced back to $1200. Our IT is now working on removing the bad historical data from that period when the price was increasing. We should be reporting through our news feed as to the root cause of the issue.
As if it never happened.
Removing the bad historical data sounds a lot like Nixon's missing 18 minutes of taped conversations. It's as if the trades were real but TPTB couldn't allow them to stand.
Good thing markets aren't manipulated, or something would smell awfully fishy.
.
Removing the bad historical data sounds a lot like Nixon's missing 18 minutes of taped conversations
Winston felt quite pleased with himself, this had been his best work yet. He had skillfully removed all references to it, with, all but the most attentive listener barely noticing the change in background noise & slightly unsual flow of conversation. You would have to known something was meant to be there, to miss it.
He spliced the tape with cellotape, wound the spool tight and popped it down the memory hole, history again safe from the past.
I've had more bad prints of late with think or swim and my ninja charts.
If you want to spook any traders, then just mess with the data. Control is no fun if you can't fuck around with it.
Maybe the Swiss decision was leaked... JPM was allowed to cover
incredibly short spike was not recorded at kitco.com site.....
Or anywhere else.
Look around.
Gold is a huge deal in Europe right now. It gets massive attention because money is considered worthless. German banks are financing 120% LTV on older homes over 15 years at 2~%. Credit is abundant and apparently not many either can or want to take it.
So, when banks are doing this and the population has experienced periods of severe monetary dilution over and over again, the interest in gold is naturally high. Where else do you put your money?
How do I refinance my home through a German bank at two percent?
I think we should call this algo ED209.
https://www.youtube.com/watch?v=_mqDjcGgE5I
lulz
Last year when the polar vortex hit, gold went up, let's see if that will be the impetus IF the Swiss gold vote doesn't go through...
Riiiiiiiiiiiight......a "Glitch"
Mr. Silver David Morgan said it was predictive programming in this interview.
https://www.youtube.com/watch?v=zn-Cab0XRlw
GOFO rate is dropping across the board (all terms) and not showing any signs of a rebound. I would have expected some upticks and increases but each day, the rate continues to fall. Either there's far more pressure at the wholesale/institutional level with physical gold availability or someone has a clear picture or inside information on the upcoming vote in Switerland. In either case, I believe the rate is basically at a record low (except for a couple of deep spike downs which quickly reversed) over the past 20 years.
If I understand the rate correctly (and please feel free to correct me if I'm mistaken), a positive rate indicates that gold can be used as collateral to borrow currency which then must be repaid with interest. This would indicate a more traditional or normally functioning market. With a negative rate, currency is used as collateral to borrow gold which then must be repaid with interest. This would indicate a stressed physical market and ironically indicates that physical gold is actually real money (and not currency). Currency is basically just a medium of exchange were money is a store of wealth.
If you look at the 3 year trend in the GOFO rate, it has been moving down steadily which shouldn't be a surprise given the consumption of physical gold by China, Russia, India, etc. and I suspect a number of "well-informed" insiders that have most likely front run the market. Not sure if this is going to finally be gold's moment or judgment day as TPTB still have significant resources available to control the price. Translation, the Fed's proxies including JPM I'm guessing have unlimited backing to sell naked short future's contracts with the Feds blessing.
But with all of this being said, its hard to determine what actually is going on given the lack of transparency in the PM markets and the heavy hand large financial institutions have played over the years. I could actually see a situation where paper traded gold continues to drop in price as parties lose faith in the fact that any real gold is available to back the paper trades (and eventually approach zero) and physical gold trades at a fair value (whatever that may be) on the new exchanges in China. In my mind, however, one thing is for certain. PM trading and markets will continue to move from west to east as eventually, Asia will dominate/control these markets and hopefully allow fair values to be estabished.
http://futures.tradingcharts.com/marketquotes/GC_.html
$1200 far, far out.
Jim Willie/ Golden Jack Ass, said in a recent interview that he's heard big sales for physical of $20 to $50 million are going for 35% above spot.
Sorry, rlouis:,
Simple math shows that on a mere $20 million bullion purchase, a 35% increased premium would result in overpaying by $7 million.
For $7 million dollars, I could charter a private jet and fly to as many bullion dealers in North America as necessary to accumulate $20 million in bullion in a matter of a day or two, and have about $6.9 million left over.
People who are smart enough and rich enough to be purchasing $20 million in bullion aren't stupid enough to throw away $7 million dollars on a relatively simple transaction.
I call shenanigans.
sorry but that has to be pure BS ...
Agreed... Jim Willie and "The Voice" have been wrong so often, they're not even worth listening to. His warnings are valid, but his predictions are shit.
You forgot the sarcasm tag
In 2012, US market-maker Knight Capital Group almost went bankrupt after it lost more than $450 million when its computers made erroneous orders that couldn't be undone. The firm was later sold.
May be i am wrong, but I recall to have read several times of Goldman and the rest undoing the trades because of computer errors ... no business of mine obviously, but just wondered
vorspeise
Interesting that no charts are showing this.
It is as if it never happened.
Reality is what you want it to be...
Where is the signup sheet for reality changes? I have a lot of stupid decisions I would like to remove...
Reality used to be a friend of mine.
http://www.barchart.com/
Still has it left a huge down direction wick on candle
They're erasing it from the hive mind so the cattle won't stampede.....
Long enough for someone to make a nickle or more
Erasing what?
Bazinga.
It's going to get VERY REAL in the near Future. Just a preview of what is coming.