Market Update: Who Sold 24 TONS of Gold This Morning?

November 28th, 2012 by

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?

by David Peterson

2 thoughts on “Market Update: Who Sold 24 TONS of Gold This Morning?

    1. GainesvilleCoins

      Yeah, I followed this up with a report that there was a massive number of puts made the night before. Someone was engaging in some blatant short-term market manipulation using paper contracts.

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