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Flash Crash of Gold Price on 6 Jan - why?

Posted: Mon Jan 06, 2014 9:41 pm
by mortalpawn
Another significant blip in the gold price (4200 contracts dumped in a second)- this is the third time I've seen this type of instant dumping in less than a year:
  http://blogs.marketwatch.com/thetell/20 ... ipulation/

Unlike previous ones (notably last April), this one did not change the price significantly, but it is odd that this keeps happening, and only on the gold market.

Re: Flash Crash of Gold Price on 6 Jan - why?

Posted: Tue Jan 07, 2014 7:11 am
by Kshartle
It was closing in on $1,250 which is a place that a lot of buy stops probably are. Someone with a lot of money who is probably short did not want it hitting those stops I suspect.

It is very odd activity. Hopefully it punched out people who were long but had tight stops or sucked in new shorts. All will have to buy in at higher prices I hope. The fact that it couldn't hold for more than a couple minutes is a positive sign for gold I think.