More information about this morning’s huge gold selloff is starting to circulate. It seems less likely that this was a case of “fat fingers” accidentally selling a large stake. London-based bullion dealer Sharps-Pixley reported that there was a single sell order of 7,800 gold futures contracts at 8:20am EST that amounted to 24 tons of gold. This act triggered massive selling to be triggered from computerized programs, with Reuters reporting that the equivalent of 35% of an average day’s trading was executed in approximately one minute.
USAgold speculates that this may have been a deliberate manipulation of the gold market by a major player, but the question remains: Who was this entity? And where did they come up with 24 TONS of physical gold?