Saturday 3rd December 2016

Resource Clips



“Liquidation binge” briefly halts gold trading Friday

by Frik Els | October 11, 2013 | Reprinted by permission of Mining.com

Shortly after the opening of trade on the Comex market in New York on October 11 the gold price plunged more than $30 an ounce to an almost three-month low of $1,259.60 an ounce.

MarketWatch reports a spokesperson for Chicago’s CME Group, which operates Comex, said at around 8:42 a.m. Eastern time a 10-second stoppage occurred:

“Scott Carter, CEO at precious metals retailer Lear Capital, said the halt happened after a two-million-ounce trade, but it wasn’t clear who was behind the trade.”

CME commented this way on Friday’s price action:

The market was caught on a week-ending liquidation binge today that was clearly exaggerated by technical stop loss selling, a decline in safe haven interest and perhaps even because of periodic strength in the dollar.

With a temporary mechanical halt in gold trading today, because of volatility safety type devices, the downside action in gold created enough headlines to at least partially signal capitulation by the bull camp.

However, it is also possible that some funds and or larger spec positions were simply forced to race for the exits today as the market fell through a series of key chart support levels.

Year to date the gold price has retreated more than 23% and looks set to end its more than a decade-long bull run in 2013.

Flashback: One short seller’s “shock and awe” crushed gold with a 400-tonne trade.

Reprinted by permission of Mining.com

Share |

View All: News Stories