Something Strange Happened During Yesterday’s London PM Gold Fix

Jon Alternative Media, Blogosphere, Geopolitics, Gold, Precious Metals

Something strange happened during yesterday’s afternoon London fix: as gold was surging on a spike in geopolitical fears, which slammed the USDJPY below 110 and sent traders scrambling into safe assets such as TSYs, London’s gold price benchmark waterfalled lower before fixed some $12 below the spot price on Tuesday afternoon as “the auction appeared to become locked in a downward spiral”, according to Reuters.
From an initial $1,265.75, close to the spot price at 3pm London time, the auction price ratcheted steadily lower, with the gold price sliding by roughly $1-$2 increments every 30 seconds, before fixing at $1,252.90 in the ninth and final round. From the fifth round to the eighth the bid and offer volumes remained frozen, unable to match.

This post was published at Zero Hedge on Apr 12, 2017.