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:
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.
Reprinted by permission of Mining.com