This isn’t some trader’s ‘fat finger’ accidentally overloading the sell button and pressing ‘sell.’ This is unadulterated BIS/ECB/BoE/Fed sponsored market intervention:
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At 4:01 EST, a paper gold nuclear bomb was detonated in the Comex Globex computer system. The graph above is just the August ‘front month’ paper gold contract on the Comex. In that contract 1.49 million ozs of paper gold were dumped into the Comex electronic trading system. Zerohedge is attributing 1.88 million ozs. That would include the selling in all of the paper gold contract months.
But that’s not the entire amount of the paper hit. There would have been a large amount of LBMA gold forward paper gold contracts dumped in correlation with the Comex paper avalanche. ZH attributes $2.2 billion in paper gold dumped. But the real number including LBMA forwards dumped was much larger.
This post was published at Investment Research Dynamics on June 26, 2017.
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