Gold was trading near four month lows today after its biggest drop in seven weeks yesterday. Another bout of peculiar concentrated selling led to Comex halting trading in December gold futures twice yesterday, the fourth time in less than 3 months.
Minutes of the Fed’s October policy meeting suggested that the Fed may start scaling back the U.S. central bank’s $85 billion in monthly asset purchases at one of the next few meetings and this may have exacerbated the sell off. ‘Taper’ speculation remains rife despite the increasing likelihood of no taper due to the very fragile state of the U.S. economy.
Gold trading on Comex was interrupted twice, according to Nanex, which provides exchange data and summarizes high frequency trading activity. Thus, trading of gold futures were suspended twice yesterday and four times in the last three months as trading was also suspended on September 12, October 11, and now, November 20.
Nanex reported that about 1,500 gold futures contracts traded in one second at 6:26:40 a.m. Eastern time on Wednesday, triggering a $10 drop in prices and a 20 second trading halt.

2013 Gold Eagles As Low As $51.49 Over Spot at SDBullion!

Gold Eagle 2
From Goldcore:

Today’s AM fix was USD 1,248.50, EUR 929.64 and GBP 775.76 per ounce.
Yesterday’s AM fix was USD 1,271.50, EUR 939.69 and GBP 787.11 per ounce.

Gold fell $28.70 or 2.25% yesterday, closing at $1,244.70/oz. Silver slid $0.47 or 2.31% closing at $19.85/oz. Platinum dropped $22.80 or 1.6% to $1,389.00/oz, while palladium fell $9.75 or 1.4% to $708.25/oz.

Gold was trading near four month lows today after its biggest drop in seven weeks yesterday. Another bout of peculiar concentrated selling led to Comex halting trading in December gold futures twice yesterday, the fourth time in less than 3 months.


Gold in U.S. Dollars  and Suspensions Of COMEX Gold Trading – 3 Month (Bloomberg)

Minutes of the Fed’s October policy meeting suggested that the Fed may start scaling back the U.S. central bank’s $85 billion in monthly asset purchases at one of the next few meetings and this may have exacerbated the sell off. ‘Taper’ speculation remains rife despite the increasing likelihood of no taper due to the very fragile state of the U.S. economy.

Gold trading on Comex was interrupted twice, according to Nanex, which provides exchange data and summarizes high frequency trading activity. Thus, trading of gold futures were suspended twice yesterday and four times in the last three months as trading was also suspended on September 12, October 11, and now, November 20.

Nanex reported that about 1,500 gold futures contracts traded in one second at 6:26:40 a.m. Eastern time on Wednesday, triggering a $10 drop in prices and a 20 second trading halt.

Damon Leavell, a spokesman for the exchange said trading was halted at 6:26:41 a.m. New York time, for about 20 seconds. The December contract fell about $11 in less than a minute before trading was suspended.

Leavell declined to comment on the size of the trade that led to the halt. The “stop-logic” mechanism gives traders the opportunity to provide additional liquidity and prevent excessive price movements.

Immediately after the release of the Fed minutes, came another burst of selling which led to gold futures being suspended for another 20 seconds. The second bout of concentrated selling is believed to have been even more than 1,500 contracts. Each contract is worth 100 ounces so 1,500 contracts is worth nearly $200 million.

Myra Saefong of Dow Jones Marketwatch wrote on her blog that, “sudden drops in gold prices and temporary trading halts in gold futures on the Comex division of the New York Mercantile Exchange seem to be becoming the norm”.

The timing was interesting as it came a day after news that Britain’s financial regulator is looking into whether gold benchmarks could have been rigged. The Financial Conduct Authority has launched a preliminary review into the issue, a person familiar with the matter told Bloomberg.

It is believed the London gold fixing is one of the important benchmarks being investigated for rigging. The London AM Fix determines the spot price for physical gold and is set twice daily by a panel of five banks. Zero Hedge suggested that the price falls on the COMEX yesterday may have been due to official intervention, possibly by the Bank of International Settlements.


Gold in U.S. Dollars, 1 Year – (Bloomberg)

Some entity appeared determined to get the gold price lower and they succeeded – for now.

The peculiar trading action in gold again yesterday suggests that certain banks may be manipulating the gold price in the same way that they rigged LIBOR and are alleged to have rigged foreign exchange markets. If so, a key question is, are they manipulating prices purely for profit motives or is there an official sanction for such intervention as alleged by GATA for many years now and by Zero Hedge recently.

The bottom line is that such trading action makes traders on the COMEX very nervous to go long and prevents gold getting some momentum and animal spirits.

However, while price manipulations work in the short term, in the long term gold prices will be dictated by the real world forces of physical supply and demand for gold coins, bars and jewellery. The smart money is fading out the considerable noise regarding volatile intraday price falls and focussing on gold’s importance as a long term diversification in a portfolio.


Investment Pyramid – (GoldCore)

It remains prudent to ignore this short term noise and day to day volatility and focus on gold’s importance as financial insurance and a vital diversification for all investors and savers today.

Support at $1,250/oz has been breached and gold is vulnerable of a fall to test support at $1,200/oz and the June 28th low of $1,180/oz.

 

2013 Gold Maples As Low As $37.99 Over Spot at SDBullion!

Gold Maple

  1. Well I just hope the PM’s go sky high by the end of the year and I believe that will happen and they better, I have a $20k tax bill to pay in April. Lol Keep Stacking I did yesterday. Have A Great Day, One Stacker To Another.

  2. On a side note, there was a mention/hint outthe Eurozone yesterday that banks were going to negative interest rates for deposits.   Draghi quelched that rumor,  but like Pandora’s box, once out it can’t be stuffed back in.
    As a former banker, I can tell you with 100% certainty that bankers are notoriously close mouthed.  CIA spooks are nattering children when compared to bankers.  Nothing is said in public that isn’t closely monitored.  I made a  public comment that was positive in content. But the President of bank hauled my ashed for talking to the press.
    Yes, bankers have their public comments, public faces,  dancing pig ads and MOPE,  deliberately shipped out for public consumption, deliberately crafted for public consumption, but they don’t announce anything of import unless its been vetted all the way to the top. 
    Then it’s carefully crafted,  as often as not,  and when important announcements are made they are usually intended to deceive the buying public.  Anthing less than hapy happy good news is going to be locked down until it can’t be held back.  Remember when the talking heads said that WAMU was safe.  Next day people were lined up like a 1933 bank run, and the bank collapsed within days. Or was it Wachovia.  No matter, both failed and were huge failures.
      Recall how Barney Frank and his agitprop dopplegangers shouted that GNMA and FNMA were sound.   30 days later they collapsed.
    It is usually only when things get really bad that a banker, central or otherwise, will make a clear unambiguous statement that things and getting really good?!?!?!   If you hear from a banker that things are good, know that in the background things are much worse that the rumors let on.  There is no such thing as plausible deniability in banking. If ‘they’ deny it, know it will happen in short order. You might have 1-2 days to exit your positions or accounts.  Remember,  the first ones out the door get the best deal.
    When Draghi  vehemently denies NIRP so as to  stabilize the Euro Bourses and chattering classes, it means that Negative Interest rates are a certainty.  When Deiselboom accidently/intentionally told all listeners that Bail-ins were the new template to bail out banks, he told the truth while trying to deny the truth of the matter.  You dont hear much from him now but if you do, the apocalypse is nigh.
    In my opinion, when a banker says things are just fine and dandy, it usually means things are not.  Beyond the usual pixie dust of advertising that ‘our bank offers the best rates and you will get approved’ (Bullsheep) it’s the despeerate banker who is forced to calm fears and deny problems all the  while he’s planning his escape route.  This ain’t your Jimmy Stewart ( It’s a Wonderful Lie) world any more.
    Usually they don’t get out of Dodge in time but what’s the world with one less banker?  A better place
    To sum it up.  
    When she’s on the clock  PlanetJanet is looking for Uranus. 
    Pucker up,  me hearties.

  3. In 2008 October we seen silver go down to around 9 dollars then start going up until it reached a peak of almost 50 dollars. I want silver and gold to be slammed as hard as possible not because I want to accumulate but because when industrial companies and large investors see that the miners are in high negative territory they will take advantage and stockpile these metals. Mostly silver in this case because of its industrial uses.
     
     

  4. And the CFTC can/t find even a hint of manipulation? I only hope that these theives are put behind bars for a long time, but for that to occur the people would need to have a memory. So, I guess they go free.

    • Hi Sam,
      The CFTC found manipulation but they also found that it was legal.  It was legal because of some obscure law from 1934 that allows the treasury to manipulate any market necessary to keep the ponzi alive.  Stop by FDR’s grave and leave him a memorial that would never be mistaken for flowers.  It’s all one can do.
      They can’t price any commodity below cost forever.  The sh1t will dry up.  That’s our only real hope.
      Hold fast.

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