That is a plunge of over 5%! I am still digging around to see if I can find any "explanations" that would make sense as to the severity of the drop and the fact that it lasted all day (from the London AM Fix until the close of US trading -- typically price massacres show the bulk of a plunge to be a period of just a few hours).
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jsmineset.com (Jim Sinclair) that some 500 tonnes of "paper" were sold, that was about noon-time IIRC correctly, but that would not explain the +/- $23.00 drop starting about 3:30 PM (US ET) today.
pmbug.com has some comments that may be useful, including a speculative note from "swissaustrian" (of Zero Hedge fame as well) offering an observation that something may be up in Europe...
Mr. Ferguson over there at his blog offered up some explanations there today, but he is not willing or able to say much more: http://www.tfmetalsreport.com/blog/4637/friday-gold-theatrics It would appear that the Commitmment of Traders report was not dramatic enough to bury precious metals prices like this...
The above cursory examination is all that I will do for now. If I encounter other explanations that seem to be worthwhile, I will post them.
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Keep in mind that I do not trade gold! I buy and hold it. Here is a report from a small central bank and what it did re the gold price drop of today:
http://www.zerohedge.com/news/2013-04-12/great-unrotation-us-gdp#comment-3443766
Please note that the bank's Senior Analyst resigned his position as Price Forecaster there.
Neither he nor I would have been able to predict the price action of today based on whatever observations of the recent past, including noting nothing amiss just last night...!
My decision NOT to try and predict the future looks better and better every day...
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About the only thing I will predict is that there will be LOTS of people Sunday evening and Monday morning watching to see what's up...
Robert
ReplyDeletefofoa discussed the likelihood of this is December and before...'gold goes into hiding'!
I find the freegold explanation as good as any.
Have you quit reading fofoa?
You will be fine with physical in possession but I see no reason to be surprised today...except that it is finally starting...the death of the paper gold market...
Mike