Gold fell a massive $50 within the space of three minutes today.
There are whispers (unsubstantiated) of central bank interference or possibly a liquidation trade by a rather large player.
A hedge fund dumping gold would make sense in this environment as they struggle to meet liquidity and redemption pressures in the pursuit of cold, hard cash.
What confuses us though is why the trade was done in a massive clump as opposed to a series of smaller trades — which may well have fetched better prices.
So we leave you with this mystifying comment from Peter Grandwich at Agoracam, aptly titled “Gold-What the *&^%&” :
Earlier this morning, I commented to Marketwatch that gold was being sold off in the worldwide drive for any liquidity. And of course, when Crimnex opened for trading, it fell $50 in about 3 minutes. In 25 years watching gold trade, I don’t recall ever seeing such a drop in such a short time. It’s as if all traders move aside and a seller sold into thin air.