Gold Flash Crashes As "Someone" Dumps $2 Billion, "Fat Finger" Blamed

Tyler Durden's picture

One minute after 4am EDT, as the European market was warming up for trading, Gold suddenly plunged $18, or as much as 1,6%, to $1,236 an ounce before bouncing, on a massive surge in volume with over 18k contracts, or just over $2 billion notional, trading in a seconds. A total of 18,149 lots were traded on Comex in just a minute, before falling back to 2,334 lots an hour later. As so often happens, the gold plunge dragged silver down with it as well.

The total gold sold amounted to 1.8 million ounces of gold in just a minute, roughly $2.2 billion notional, a level not reached even with the surprise election of U.S. President Donald Trump or Britain’s vote to leave the European Union according to Bloomberg.

A better chart of the move comes courtesy of Nanex which shows how the sudden selling soaked up all the liquidity in the gold market in seconds, with the clear intention of repricing gold lower.

With no clear driver for the move, Bloomberg has suggested it may be a "fat-finger" mistake, although many are skeptical and see either algo or central bank intervention, as the gold plunge was offset by the usual USDJPY spike, which jumped as high as 0.35% to Y111.66.

No-one has a clue, apart from the unfortunate individual that pressed the wrong button,” David Govett, head of precious metals trading at Marex Spectron Group in London, said of the spike in volume.

Bloomberg adds that "others said a trader may have made a larger order than intended, or underestimated the market’s ability to absorb so much gold" unless of course the intention to reprice the market by nuking the bidside orderbook was very much deliberate.

“These moves are going to become more widespread with the way things are going,” Govett said by email. "The more they happen, the worse they will become as people back away from holding positions."

Of course, if it was a fat finger, gold would have promptly reverted back to its pre-"finger" price. That it didn't is all the clues one needs about the intention behind the sell order.

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NoDebt's picture

It's OK.  We're all used to it by now.

 

c2nnib2l's picture

it was an upward trend ! This is nothing to be ok about for the fuck sake 

 

I'm not ok with this... I've lost money arghhhhhhh somebody give me a shootgun 

 

over 300 tons ! HOW is this possible !? you can sell 30 tons... maybe even 40 ! but not 300 ! 

Crypto-World-Order's picture

Paper derivatives are evil.

 

These evil jew bankers are going to get that karma

tmosley's picture

<--Gold recovers first

<--Crypto recovers first

c2nnib2l's picture

You simple cannot sell 300 tons of gold in one phone call ... and who would sell it anyway ? how is this even possible 

 

unless you want to dump 300 tons of paper on the market 

max2205's picture

Off 1% big whoop.   Gold has no liquidity vs Fed backed stawks 

BaBaBouy's picture

GOLD 101... paper GOLD Shitstorm...

Straight from the FED's Gamebook...

French Bloke's picture

Funny how you never seem to see that Fat Finger mistake to the upside....

Just wondering.

TahoeBilly2012's picture

"Just doing my job, I have a wife and kids to feed....buy some bitcoin..."

38BWD22's picture

 

 

FWIW, I took physical delivery in Turin of 0.366 toz of gold at about noon here (+/- 6:00AM US ET).

The Italian bank failures are JUST being talked about, other than the $6 bn bailout.  Stores & banks open, ATMs working.

jaxville's picture

  Although you bought some phiz (what kind of coin(s) did you buy?) someone had to buy 300 tonnes worth of paper.  A few years ago that would have shaved at least $50-$60 off the price.

  I wonder who the buyer is? 

  Watch for the local (New York) dealers who are offering spot + on 100oz bars.  Once there is an arbitrage opportunity you will see demand for the comex gold.  The spread between Asia and New York is not enough to warrant demand for comex gold.  I am also under the impression that much of the eligible material is now kilobars of 4 nines fine.  The old wonky 100 oz bars are being refined into material the market actually wants.

 

mary mary's picture

Baby needs a new pair of castles.

auricle's picture

all the fat finger events happen in the PM markets. Never see these fat fingers in the emini's 

auricle's picture

fat finger blamed....but not confirmed. 

philipat's picture

Yes, I wondered the same thing in this same thread at 6:00AM......;-)

OpTwoMistic's picture

REAL money, not fiat on sale.  Thanks banksters and Treasury Secretary.

fockewulf190's picture

So, two middle sized Italian banks got bailed out (using printed out of thin air cash sent by secret wire from Uncle Mario no doubt because a bail-in is so politically toxic, it would have blown up yet another government), and there was such a fear that gold might catch a bid, it was attacked pronto before anyone was even near a trading desk.

The game must really be extreamly unstable right now. These fuckers are literally throwing billions at the gold price, of which financial loss as a concept is never considered. The "gain" for the banksters is sentiment destruction...pure and simple. It has been effective, so far, to an extent, but it seemed to only surpress western demand. In the east, this is yet another sale, although it looks like someone called India up and again railed about domestic gold demand bringway too high, and thus we see the latest shenanigans from the Indian government verses gold.

I'm still stacking phyzz regardless.

TahoeBilly2012's picture

Watch this!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

Don't stop believin'...............................................................................

 

HANG ON TO YOUR HATS ZHEDGE BITCHEZ!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Gordon_Gekko's picture

Spot on. The current India Government is a bankster STOOGE.

Give Me Some Truth's picture

Several have predicted that when things start to get really dire, the manipulations and lies will become even more brazen. We're going to have to create some new words to describe what's taking place - "brazen. More brazen. Brazenest. Super duper extra powerful brazenest brazen?"

Murder committed in broad daylight in front of 1000 witnesses brazen?

Folkvar's picture

If the information Andrew Mcguire is putting out is true then I suspect we'll be seeing a lot more criminal smashes like this over the next couple of weeks. 

TahoeBilly2012's picture

https://www.youtube.com/watch?v=8dDhO4wS-0k

HITCH YOUR WAGON TO MINE FELLAS, WERE ARE GOING ON A WILD RIDE!!!!!! STARTS RIGHT HERE, RIGHT NOW!!!!!!!!!!!!!!!!!!!!

 

Gordon_Gekko's picture

Yes. That's how I timed the current crash. A lot of people diss Andrew Maguire cuz they say "oh he has been wrong for years" but he is describing behind the scenes REAL situation. The more desperate it is, the more they will try to control the price. And the crashes in paper price actually reveal their desperation and validate Andrew. 

TahoeBilly2012's picture

If you can't sing along, you can't come along!!!!! Start singing and watch your screens!!!!

Gold Gold Gold Gold Gold Gold! Gold!! Gotta dream boy Gotta song Paint your wagon And come along Where am I goin'? I don't know Where am I headin'? I ain't certain All I know Is I am on my way When will I be there? I don't know When will I get there? I ain't certain All that I know Is I am on my way Gotta dream boy Gotta song Paint your wagon [And come along - Sung In German] [Verse sung in German] [Verse sung in Chinese] [Verse sung in American Indian] Gotta dream boy Gotta song Paint your wagon And come along Where am I goin'? I don't know When will I be there? I ain't certain What will I get? I ain't equipped to say But who gives a damn? Who gives a damn? Who gives a damn? We're on our way Where am I goin'? I don't know Where am I headin'? I ain't certain All that I know Is I am on my way When will I be there? I don't know When will I get there? I ain't certain All that I know Is I am on my way -Instrumental- When am I goin'? I don't know Where am I headin'? I ain't certain All that I know Is I am on my way When will I be there? I don't know When will I get there? I ain't certain All that I know Is I am on my way Gotta dream boy Gotta song Paint your wagon And come along Where are we goin'? I don't know When will we be there? I ain't certain What will we get? I ain't equipped to say But who gives a damn? Who gives a damn? We're on our way!
dark pools of soros's picture

A couple bitcoins aught to buy that 300 or 800 tons of gold

shamus001's picture

When you print paper nothingness, from nothing, and pretend it represents "value" by taking those make-believe notes and pretending they're gold....well you can effectively sell more "Gold" than exists in totality.

It should be 1 million notes, or a billion for an oz of gold....it might as well be $1 for an oz of gold. Aside from a few oz, no one can purchase a large order of gold, because no one is selling large orders. CBs have a "secret price" for gold settlement between eachother (and it isnt 1200) and they keep the peasants paws off of the gold by creating a false price that deters purchase. (Only fools sell gold/silver at the faux prices set by the mechanism they force upon you)

This can be remedied if everyone sells at 10x, but buy at 1x comex price. Soon there will be all bid and no offer on physical metals. 

Sages wife's picture

The 'market' is not trading precious metals. The 'market' is taking wagers on the future performance of precious metals. The scam is in how they manage to register wagers as transactions on the commodity indices. The odds at the track affect/set payouts and the ticketholder does not own a share in the horse, only a share in the outcome of the race. The commodities seldom change hands.

Crypto-World-Order's picture

I would say cryptos but july is going to be very rough due to BTC's status. Gold is looking like a good buy here

Erek's picture

Who the fuck has a private stash of 300 tons of the real thing laying around?

Ahh! Golden asswipe. What luxury!

c2nnib2l's picture

it didn't drop below the last highest low's it will recover... it's just going to take some time..

 

Crypto-World-Order's picture

It will but it will always be smacked down here and there at will, until the paper derivatives scam is broken.

VinceFostersGhost's picture

 

 

Same old.......same old.

 

 

If you understand gold.......you understand the world.

 

 

I am GetZeeGold.

Took Red Pill's picture

The market is all fixed, a scam, and it has been for many years. It's illegal what's being done but will any of us ever be compensated for our losses?

VinceFostersGhost's picture

 

 

What losses?

 

If you understand the game.....beat them at it.

Give Me Some Truth's picture

I guess we could be if the right law firm(s) ever filed the right class action lawsuit and some bad-ass lawyer who likes whipping thieves tried the case and refused to settle or be bought off. Alas, I think such attorneys only exist in fiction.

 I like these ZH headlines about the recurring cliff-dives in precious metals. "Someone" dumped ....

Well, someone (beside ZH) in the MSM needs to be reporting on this and drawing the same obvious conclusions.

Give Me Some Truth's picture

It seems to me that $18.50 silver and $1300 gold are the lines that they have now deemed can't be breached.

BTW, "crickets" on the imprending "debt ceiling debate." What debate? The debt ceiling will be raised with little debate. This "Freedom Caucus" that David Stockman thinks will draw a line in the sand will let the status quo (never ending debt) continue with nary a fight. I love Stockman, but I disagree with this prediction.  

Give Me Some Truth's picture

It seems to me that $18.50 silver and $1300 gold are the lines that they have now deemed can't be breached.

 

dark pools of soros's picture

When's it recovering to $1800?

rent slave's picture

As soon as the Phillies sign Kershaw,Harper,and Machado.The price of gold and the Phillies' success-or lack of-have moved in tandem since 1975.

Crypto-World-Order's picture

Ill take the Stros over any team

Saro's picture

ZH: Flash crash in gold! Down 1%!

Bitcoin:  You are like little baby, watch this . . .

quadraspleen's picture

dude, don't be trying to "make money" with AU right now..in a year, perhaps, but anyone who risks capital on gold at the minute needs to be able to lose without asking for "a shootgun"

 

Remember: you may get out less than you put in. No such thing as an "upward trend" when CBs are involved

SubjectivObject's picture

a shitgum, however, may be appropriate here

quadraspleen's picture

"over 300 tons ! HOW is this possible !? you can sell 30 tons... maybe even 40 ! but not 300 !"

 

It's paper, dude..it's notional..it's not real gold..

kooka's picture

From my math, 14k contracts is about 56 tonne of gold.

1stepcloser's picture

"I've lost money arghhhhhhh somebody give me a shootgun"

 

If you own physical, you still have the same weight in "real money" as you did before.   measuring your wealth in fiat currency is fucking with your head.. 

Give Me Some Truth's picture

The mining shares are attacked harder than the physical. If you want to see the picture of no grit, see the CEOs of the mining companies who grin and bear these attacks without ever uttering a single word of protest. The industry's trade associations also never utter a peep or apparently even bother complaining to their congressmen. 

These CEOS apparently get paid handsomely even when their stocks are being knocked down dramatically. It's their shareholders and employees who are getting creamed and suffering major losses because of crooked activities.

HedgeJunkie's picture

My meager hoard of gold, and somewhat less meager hoard of silver, is all in my hand, could give a shit what the banks say.

I've got 20 ounces of silver with me now, just for "oh shit" purposes.

The central planners's picture

If you dont sell for fiat youve lost nothing.