From KITCO, 6th article on their list, "Updated: Slide In Gold Futures Occurs On Heavy Volume; Sell Stops Activated". Well worth the time to read, I pulled some select quotes.
"... 2 million ounces that went through the futures market in a period of like 10 or 15 minutes. There was a mixture of (sell) stops and lack of liquidity.”
"... 2 million ounces in a short period of time... to put that in context, that’s a 20,000-lot order in the futures market, since it’s a 100-ounce contract ... that’s huge….there are very few people who can throw size like that around.”
"TD Securities said it suspects the size of the large sell order itself may have been around 800,000 ounces, coming a day after an apparent 600,000-ounce order hit the Comex market."
“For now, gold is in the hands of the speculators and given the lack of participation this week, down is the path of least resistance ... Asia has been buying gold on this sell-off, and we hope to see a re-emergence of physical demand next week.”
I wonder if that high-volume sell-off during the last 30-min of trading yesterday wasn't a precursor to this? Plus the total volume at close popped up to 5M from typical 4M, though both figures still below 6M 3 mo. avg. Today's action strikes me as simply technical, some big fish wanted out of PMs.
Out for the weekend, staying short. C = A this morning, a bit scary for a short. That would end a normal retrace, but the wave count don't seem right. ie price down to base of the pop = price down from the top of the pop until this morning, apx. Have a Great Weekend, guess as always futures Sunday night may decide. Dave 34