Jump to content
  • The above Banner is a Sponsored Banner.

    Upgrade to Premium Membership to remove this Banner & All Google Ads. For full list of Premium Member benefits Click HERE.

  • Join The Silver Forum

    The Silver Forum is one of the largest and best loved silver and gold precious metals forums in the world, established since 2014. Join today for FREE! Browse the sponsor's topics (hidden to guests) for special deals and offers, check out the bargains in the members trade section and join in with our community reacting and commenting on topic posts. If you have any questions whatsoever about precious metals collecting and investing please join and start a topic and we will be here to help with our knowledge :) happy stacking/collecting. 21,000+ forum members and 1 million+ forum posts. For the latest up to date stats please see the stats in the right sidebar when browsing from desktop. Sign up for FREE to view the forum with reduced ads. 

Attempted gold smash? Or somebody goofed?


Bumble

Recommended Posts

On Weds 20th March 2019, just as London markets closed, someone sold $1 billion of paper gold contracts, temporarily driving the spot gold price below $1300. Given that within a few hours, gold had risen to $1315, by my calculation this move cost the seller about $15 million. One can only assume that this was either a huge bet on the Fed announcing a rate rise, or a failed attempt to drive the price down before option expiry at the end of the month.

gc-2019-03-20.thumb.jpg.118979448464c2b89b831302bd260221.jpg

Link to comment
Share on other sites

20th March GMT 6pm macro economic new from The Federal Open Market Committee (FOMC) moved the price of gold and other financial instruments

image.thumb.png.0452ef47364130212ccae6fd03a79fe7.png

At 6pm 36,100 futures contracts traded (data obtained from Interactive Brokers) on Gold during that spike higher in Gold price not unusual. The contracts traded could have been new longs or stops triggered not possible to know how many new longs/stop triggered.

49 minutes ago, Bumble said:

someone sold $1 billion of paper gold contracts, temporarily driving the spot gold price below $1300. Given that within a few hours, gold had risen to $1315, by my calculation this move cost the seller about $15 million. One can only assume that this was either a huge bet on the Fed announcing a rate rise, or a failed attempt to drive the price down before option expiry at the end of the month.

Making assumptions I don't see anything wrong with the charts, volume, price action in gold yesterday.

Link to comment
Share on other sites

1 hour ago, Bumble said:

someone sold $1 billion of paper gold contracts,

 

why do people always assume that it's a single trade?

what's more likely?

a single trade in a period of high volatility betting large

sums, ie a complete gamble with high stakes? or

an uncrossed trade. a trade system set up by the market

for times of higher volume where many traders can make

smaller trades and it's tallied up into one large group

trade? (think byb group order pre brexit)

 

the graph looks like normal market behaviour. maybe a

smaller ending wave c followed by a 1-2-3-4-5 going the

other way.

 

HH

Link to comment
Share on other sites

Is it possible it was a smash down using paper in order to get the price down to buy physical before the BIS /  Basel III laws come into effect on the 29th, the same day as Brexit.   Will there be a Brexit twist that puts gold massively upwards like it did on the referendum result, once it's officially a tier one asset on a banks balance sheet a higher price does not seem such a bad thing for them.

Link to comment
Share on other sites

1 hour ago, HawkHybrid said:

why do people always assume that it's a single trade?

Because the smashes are frequently tracked back to a small number of entities. i don't know in this instance but it is often one entity or 2 or 3 acting in concert, selling 1000's of contracts at a low volume time. They never get picked up for it which is one of the reasons people say the price is manipulated.

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

Link to comment
Share on other sites

1 hour ago, Wonger said:

Maybe it was simply normal market preparation for the post FOMC rally which was driven by pure short covering and now were going back down again.😀

i though it was you behind this selling another tranche of contracts short.

Always cast your vote - Spoil your ballot slip. Put 'Spoilt Ballot - I do not consent.' These votes are counted. If you do not do this you are consenting to the tyranny. None of them are fit for purpose. 
A tyranny relies on propaganda and force. Once the propaganda fails all that's left is force.

COVID-19 is a cover story for the collapsing economy. Green Energy isn't Green and it isn't Renewable.

Link to comment
Share on other sites

13 minutes ago, Bumble said:

@fiveshotdon  Next time you are selling $1 billion dollars of gold, post it on the trading thread of the forum first. I would happily have bought it off you and saved you the commission.

🤣only have a few queens beasts left unfortunetly and then im out of metal.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...

Cookies & terms of service

We have placed cookies on your device to help make this website better. By continuing to use this site you consent to the use of cookies and to our Privacy Policy & Terms of Use