Monday, November 25, 2013

Gold Market Halted by Large Sell Order, Again!

Zerohedge reports that last night a sell order for 1,500 contracts worth about $180M was dumped on the gold futures market.  Gold price dropped about $10/ounce in response and market halts triggered stopping trading for 20 seconds.  Now (as of 10am eastern) gold has rebounded to above $1,240 where it started the day.
http://www.zerohedge.com/news/2013-11-25/gold-hammering-leads-another-overnight-gold-market-halt

It's deja vu all over again.  The gold market did the same thing last Wednesday, November 20th.  1,500 contracts sold; halted market for 20 seconds; price rebounded quickly.  Then, last Wednesday a second large sell order hit the market in the afternoon which smashed prices $15 to $1,245.  Gold prices stayed down after the second beating of that day.  


Will we see a second blatant sell order this afternoon as we did on the 20th?  The beatings will continue until morale improves.


Today, Monday November 25 gold and silver option on the COMEX expire.  Wednesday November 27th is the first notice day for COMEX December gold and silver contracts.  That is the first day that holders of December dated futures contracts can provide notice to the COMEX that they are standing for delivery.


COMEX registered gold inventory is 589,414 ounces or 18.3 tonnes.  Total December future contracts or open interest as of Friday evening was 104,270 for 10.4M ounces.  There are 100 ounces per contract.  Only 0.6M ounces are in inventory to cover a potential demand of 10.4M.  The demand or open interest is, however falling quickly as is typical just before a notice period especially with falling prices.  On Thursday and Friday open interest for December futures fell by 23,784 and 22,313, respectively.
http://www.cmegroup.com/trading/metals/precious/gold_quotes_volume_voi.html

2 comments:

  1. FLASH: China knows about gold price suppression, and U.S. knows China knows

    Back in October gold researcher Koos Jansen and Jan Skoyles of The Real Asset Co. in London called attention to commentary by Zhang Jie, deputy editor of the Chinese publication Global Finance and a consultant to the China Gold Association, which cited the Federal Reserve's manipulation of the gold market to protect the U.S. dollar's standing as the world reserve currency.

    Jansen has obtained a much better English translation of this Chinese commentary, and it includes this observation about gold leasing by Western central banks: "Through continuous gold leasing the gold in the market can be circulated and produce derivatives, creating more and more paper gold. This is very significant for the United States. Gold leasing is a major tool for the Federal Reserve and other central banks in the West to secretly control and regulate the gold market, creating gold credit derivatives and global credit conflict."

    That is, China knows all about Western gold price suppression and the U.S. government knows that China knows.

    Indeed, while financial authorities and mainstream financial journalists in the West just scoff at complaints of gold price suppression when they even deign to take notice of them, China understands gold price suppression to be the primary objective of Western central banking and is designing its own policies to overthrow it.

    CHRIS POWELL, Secretary/Treasurer

    http://www.gata.org/node/10380

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