Gold 'Flash Crash' as $2.7 Billion Worth of Gold Futures Sold in Less Than 2 Minutes

GoldCore's picture

In what looked like another successful bid to manipulate the gold market lower, there was massive selling of gold futures contracts - some 700,000 ounces worth of gold futures in mere seconds. The equivalent of one-fifth of a whole day’s trade in a normal session, was sold in a concentrated manner in less than two minutes - pushing prices lower again.

Today’s AM LBMA Gold Price was USD 1,115.00, EUR 1,029.17 and GBP 717.41 per ounce.
Friday’s AM LBMA Gold Price was USD 1,143.00, EUR 1,049.25 and GBP 730.68 per ounce.

For the week, gold was lower in dollars and pounds but eked out slight gains in euros. Gold fell 2.5% to $1133.90 per ounce and silver fell 4.4% to $14.89 per ounce.

20-07-2015_4

This morning, massive concentrated selling in the futures market again led to sharp price falls and at one stage gold fell nearly 5% to below $1,100 per ounce. Gold in Singapore for immediate delivery fell sharply  while gold in Switzerland bounced higher from the intra day lows.

ANZ Bank analyst Victor Thianpiriya said in a note that the “nature, size and timing of the heavy selling” suggests someone “was taking advantage of low liquidity or some sort of forced selling had taken place.“

The sell off in the gold market spooked other commodities and most commodities are seeing sharp selling today, while stocks have continued to eke out further gains.

This is somewhat counter intuitive as the sharp falls in commodities in recent days suggest the global economy is weakening and threatened by deflation. Thus, stocks should be falling too. However, it appears that stocks are being supported by ultra loose monetary policies and currency debasement for now.

Gold looks horrible technically after having a fourth weekly loss last week. This is the longest series of price falls  since February. The price falls are despite strong coin and bar demand internationally. U.S. Mint gold bullion coin sales remain very robust and dealers, mints and refineries report robust demand - particularly in Germany and wider Europe and indeed in the U.S.

This suggests that we are close to capitulation and a bottom and gold looks very oversold. Gold mining stocks absolutely collapsed last week with the XAU index down 8.1% and the HUI index down 9.3% - another indication that we may be close to a bottom.

Although as ever we caution to never ‘catch a falling knife’ and $1,000 per ounce remains possible on the down side. Dollar cost averaging into a physical position remains prudent.

Silver for immediate delivery fell 0.6% to $14.84 an ounce. Spot platinum fell 1.1 percent to $984.51 an ounce, while palladium fell 1 percent to $611 an ounce.

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jcdenton's picture

Calm before the storm ..

Madcow's picture

All commodities are crashing to multi-decade lows - i guess because of the "recovery" that's just on the horizon. 

And just wait until they start increasing interest rates !! 

Spungo's picture

Things like this really worry me. Such blatant manipulation wouldn't happen unless there was a reason for doing so. It's like someone is trying to scare people away from metals so they hold euros...

Bemused Observer's picture

I found another 10 GRAMS of 14 and 18k jewelry in a ONE DOLLAR bag of "costume jewelry" this weekend...

Keep up the good work, whoever is doing this manipulation! I'm not done accumulating yet. Keep people thinking their gold is crap, it has been working well for me.

gaoptimize's picture

I suspect there will be more attempts to wash out the longs.  I wish I knew when to catch this falling knife.  Very soon, maybe today, this week, but for sure this month.

Dame Ednas Possum's picture

I sincerely hope so...more physical bang for my clown-bucks.

Let me feel the phyzzzzz...

WhackoWarner's picture

Maybe just maybe sub 800.  Last gasp?

Transformer's picture

It can go as low as they want it to go  They being TPTB.  Look, it's just paper, they can sell paper for anything.  But sooner or later the game falls apart and no one wants paper.

Paper's cheap.

USisCorrupt's picture

Those who buy Physical Gold and Silver do so as insurance. This is just more PROOF you need to buy more for that insurance will soon be needed.

 

It's all FALLING apart as we speak/type.

prefan4200's picture

If the Russians, Chinese, and possibly others are all together in plotting an imminent coordinated massive attach/war against the US, wouldn't it be good business for them to naked short the shit out of gold and silver to drive the price down, buy as much physical as possible at the lowered prices before war, then when war kicks off, say to the US, "screw you, not paying".  And if they win the war over the US, they dictate the terms and the shorts are never covered, possibly because the US is "over" anyway.  Dire scenario, but if other countries are planning a massive coordinated attack against the US, this plan would enrich them significantly.  If the US got wind of such a plan, it would be taking the steps it is taking right now with Jade Helm, western bunkers being upgraded at a cost of billions, billions in firearms and bullets being purchased by almost all federal agencies, backup Fed facilities being readied, etc. etc.  If some billionaires got an inside tip from well-connected foreign friends, it would explain why so many of them are going forward with bug-out plans to New Zealand and elsewhere.   This is just speculation, I'm trying to read the tea leaves, too.  But everything would fit with just this scenario.

slammin_dude's picture

Maybe, but not likely....last i checked the country knocking on people's borders is us, and England, not China, or Russia.

Foreign armies "invading" is the NeoCon wet dream, they can't wait for it, even though the geography makes it impossible. I didn't realize Russia and China were the ones bombing every second country on the planet and have 800-900 foreign military bases. Germany, Japan, SKorea Phillipes, Iraq, Afghanistan, Italy, Panama etc are all occupied terrirtories of the US Army, Pentagon and the CIA, not some foreign "barbarians".

It's chicken little, just like the self-chosenites Isreal bitching about Iran and how they're "months away" from the bomb for the last 20 years.

They're getting ready for when the shadow govt crashes the system, not some foreign invasion. Besides when you pull the curtain away and go from soft Tyranny to full frontal global Fascism with America at the head, you need a way to take care of the "uppity" lower class with guns here in the good ole USSA.

My guess is they're moving to NZ because it's gorgeous, and who isn't tired of living around the FSA and Mexican and Guatemalan GanbBangers.....

Fahque Imuhnutjahb's picture

IMO, the attack is underway, but the markets are the preliminary battlefield.  If an adversary's economy can be negatively impacted, it will foment instability from within; that is the mod-us operandi of the great powers

for the time being.  Because of the interconnectedness of economies, the trick is to be able to sever critical ties (much like the common rope mountaineers would use to connect to each other) before the fall.  The

stateless, multinationals can capitalize on the disaster, regardless of who wins or looses, if they position themselves correctly.  This could easily flare into a hot war once one of the main actors feel they are getting

irreparably behind the eight ball.  But for now proxy wars seem to suffice for a chess match writ large.

1033eruth's picture

Gold and silver commodity market is like a grain of sand on the beach compared to currency, bond markets.  If the big boys want to manipulate something for profit, they'll use something else.  For example, look at how many times Greece was saved.  Look at the number of BTFD opportunities there were in conjunction with the Greece roller coaster.  

And you think gold is the market to play for fun and profit?  

Whenever we get articles like this I can count on 50% of the comments to be pumpers for gold because they own some.  If the price is going down, its, BACK UP THE TRUCK.  If the price is going up, I BOUGHT IT AT $350!!! and I'm a genius, etc, etc, blah, blah.  

You're not geniuses if you're still breeding and thinking that you're going to send your kid to college when it costs $100K a year down the road.   

gaoptimize's picture

There is a day coming when talent and productivity will outweigh credentials in the labor market.