By Nick Hubble •
Gold popped more than 2% overnight while stocks in the US and Europe fell.
Well, apparently someone dropped a whopping buy order on the Comex exchange, where gold futures trade. 3000 contracts traded in one second, sending the price up $10 and halting the exchange for 10 seconds. At 100 troy ounces a contract, that amounts to 300,000 ounces and around US$372 million. All trading at precisely 8:07:45 US time.Normally traders stagger big orders to avoid upsetting the market price. If the 3000 contracts traded over the space of a few hours, that would've gotten the buyer a much lower price. So why would a buyer throw in such a big order?Well this surge in volume and the resulting market shutdown is nothing new for the gold market. It's happened three times this year, says the blog Nanex. But this is the first time the order was a 'buy'. Gold usually gets slammed down by a whopping sell order instead. So is this a big sea change, or just another market manipulation?
By far the best tribute to Nelson Mandela that I have read was not made in the past few days but fifteen years ago, when Mandela was about to leave the presidency. It was delivered in the Parliament of South Africa by Tony Leon, then the leader of a small upstart party that would soon go on to dominate the opposition.
On the heels of more volatile trading in global markets, today Canadian legend John Ing told King World News that the Shanghai Gold Exchange has now delivered more than gold than what is supposedly stored at Fort Knox in the United States. Ing, who has been in the business for 43 years, also spoke about how this will impact the price of gold in the future.
By Simon Black
On the other side of the world today, a couple of gentlemen that few people have ever heard of signed an agreement that has massive consequences for the global financial system.
It was a Memorandum of Understanding signed by representatives of the Singapore Exchange and Hong Kong Exchange. Their aim-- to combine their forces in rolling out more financial products denominated in Chinese renminbi.
This is huge.
John Hathaway's interpretation of gold's decline, with prices nearing $1,200 as he spoke on Wednesday morning, paints an exceptionally bullish long-term picture.
Gold price weakness has been paradoxically accompanied by rising physical demand, Tocqueville fund manager John Hathaway told Mines & Money London this morning. “The paper tail is wagging the physical dog in the gold market,” he said in a keynote speech on the conference's final day.
Central bank buying and gold repatriation outside the US most notably by Germany, Hathaway said, has pulled the physical foundation out from under a highly leveraged and unstable credit structure. Citing figures used by the Reserve Bank of India, he said physical backing in the gold market is collateralised up to 90 times over