A very large gold sale on the futures markets knocked the gold price down sharply, could there be more to come?
Author: Lawrence Williams
Posted: Tuesday , 15 Jul 2014
LONDON (MINEWEB) -
Well, hardly had our article yesterday on a potential smashdown in gold and silver been published on site for a couple of hours than, hey presto, it seems to have happened. Or at least started. According to reports a massive $1.37 billion sale of gold futures hit the market at New York open.
This initially drove the gold price down by around $20 before it recovered a little maintaining a level just above $1300 an ounce where it stayed overnight and in choppy morning trade in Europe. This morning has seen some strength on a rebound, though, taking the yellow metal back up above $1310 at the time of writing suggesting greater resilience than yesterday’s heavy seller(s) may have contemplated. Silver has been following gold’s lead as it is wont to do.
True there had been weakness with some strong selling ahead of yesterday’s London open into a thin market as well so it looks like gold may have been seen as vulnerable and the heavy sellers – no doubt the holders of the big short positions – were quick to take advantage with a total knockdown of around $35 on the day.
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The miners have started 2014 very well indeed on the back of rising gold prices, so the question is; is this the real deal or another head fake? Is the bottom really in? Could there be a final capitulation just ahead of us? Will the summer doldrums take the PMs lower?
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