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

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.

Comments

c2nnib2l Gordon_Gekko Mon, 06/26/2017 - 05:53 Permalink

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 ! 

In reply to by Gordon_Gekko

jaxville 38BWD22 Mon, 06/26/2017 - 12:00 Permalink

  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. 

In reply to by 38BWD22

fockewulf190 BaBaBouy Mon, 06/26/2017 - 08:13 Permalink

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.

In reply to by BaBaBouy

Gordon_Gekko Folkvar Mon, 06/26/2017 - 08:36 Permalink

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. 

In reply to by Folkvar

TahoeBilly2012 Gordon_Gekko Mon, 06/26/2017 - 08:42 Permalink

If you can't sing along, you can't come along!!!!! Start singing and watch your screens!!!!GoldGoldGoldGoldGoldGold!Gold!!Gotta dream boyGotta songPaint your wagonAnd come alongWhere am I goin'?I don't knowWhere am I headin'?I ain't certainAll I knowIs I am on my wayWhen will I be there?I don't knowWhen will I get there?I ain't certainAll that I knowIs I am on my wayGotta dream boyGotta songPaint your wagon[And come along - Sung In German][Verse sung in German][Verse sung in Chinese][Verse sung in American Indian]Gotta dream boyGotta songPaint your wagonAnd come alongWhere am I goin'?I don't knowWhen will I be there?I ain't certainWhat will I get?I ain't equipped to sayBut who gives a damn?Who gives a damn?Who gives a damn?We're on our wayWhere am I goin'?I don't knowWhere am I headin'?I ain't certainAll that I knowIs I am on my wayWhen will I be there?I don't knowWhen will I get there?I ain't certainAll that I knowIs I am on my way-Instrumental-When am I goin'?I don't knowWhere am I headin'?I ain't certainAll that I knowIs I am on my wayWhen will I be there?I don't knowWhen will I get there?I ain't certainAll that I knowIs I am on my wayGotta dream boyGotta songPaint your wagonAnd come alongWhere are we goin'?I don't knowWhen will we be there?I ain't certainWhat will we get?I ain't equipped to sayBut who gives a damn?Who gives a damn?We're on our way!

In reply to by Gordon_Gekko

shamus001 c2nnib2l Mon, 06/26/2017 - 10:15 Permalink

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. 

In reply to by c2nnib2l

Sages wife shamus001 Mon, 06/26/2017 - 11:31 Permalink

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.

In reply to by shamus001

Give Me Some Truth Took Red Pill Mon, 06/26/2017 - 07:36 Permalink

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.

In reply to by Took Red Pill

Give Me Some Truth Crypto-World-Order (not verified) Mon, 06/26/2017 - 17:30 Permalink

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.  

In reply to by Crypto-World-Order (not verified)

Give Me Some Truth 1stepcloser Mon, 06/26/2017 - 07:59 Permalink

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.

In reply to by 1stepcloser