I am not surprised by yesterday’s sudden crash in gold and silver. These things will happen more often on days when trading volumes are less and/or some key bullion trading nations are closed. Such moves are manipulated with the sole aim to create panic among retail investors. Sometimes these types are moves are insider trading moves wherein the big traders knows exactly the price at which certain buy stop losses or sell stop losses will get triggered. I have also seen gold and silver cartels resorting to such moves (even on day with normal volumes) either to close existing open positions or start building one way long term positions. I have seen these kinds to moves happening (in the past) in India’s MCX and NCDEX. The grapevine knows the cartel which had resorted to such moves but since such moves do not happen regularly investigations are not done. The cartel knows the penalty of such moves if they get caught. But still they try for such moves as they know that the profit from such moves is much more than fines/penalties imposed.
This post was published at GoldSeek on 27 June 2017.
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