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If it's a fat finger, it's not immediately being lifted. So far, gold hasn't bounced a dime from...

  • Wednesday, November 28, 2012, 9:18 AM ET
    If it's a fat finger, it's not immediately being lifted. So far, gold hasn't bounced a dime from a quick $20 sell-off an hour ago. Chatter says the move was due to a contract rollover that accidentally became an outright sell. Silver has moved in concert, SLV -2.1% premarket. Oil and copper, both lower by more than 1%, complete the picture for key commodities.
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This news story has 20 comments:

  •  
    No mention of manipulation then? Just an accident. Maybe they've all been accidents. Must make it all ok!.

    Don't think so,

    Stuart
    28 Nov 2012, 09:39 AM Reply Like
  •  
    Starting ABC down. Look at African Rand miners, they have the wind at their backs with a falling currency lowering costs.
    28 Nov 2012, 09:46 AM Reply Like
  •  
    First, the COMEX declares Force Majeur (yesterday) because they cannot fulfill their contracts, and today gold and silver get hammered.

    Interesting.
    28 Nov 2012, 09:48 AM Reply Like
  •  
    It's JP Morgan holding up one very fat finger to every PM investor in the world.
    28 Nov 2012, 10:00 AM Reply Like
  •  
    Gold is not immune. Its beta has been creeping up. It now sells off when the market sells off. Its becoming a much more popular asset class.
    28 Nov 2012, 10:04 AM Reply Like
  •  
    CNBC reported about an hour ago that someone bought a huge number of puts and others followed or adjusted accordingly. I'd like to hear other opinions but wouldn't it be rational to expect a short term pull back in gold "IF" there is a fiscal cliff deal accomplished? Then... resume climbing the wall of worry again based on longer term issues?
    28 Nov 2012, 10:33 AM Reply Like
  •  
    The market is broken, as exemplified by this sequence of events and their collective effect.

    Traders should keep in mind that futures options can be highly illiquid and may not be well integrated with the underlying contract pricing. Some major brokers told me a few months' back that they would not offer futures options (especially metals futures options) since they could not provide accurate pricing models. Now we see that the options have a dramatic effect on contract pricing. In some options, there is no movement when the underlying moves dramatically. The futures options market is not anywhere close to efficient, doesn't follow standard pricing models, and in today's case had a deleterious effect on the underlying market.
    28 Nov 2012, 01:43 PM Reply Like
  •  
    IMHO any fiscal tightening , in conjunction with ultra-loose monetary policy ( also- the Fed may well announce in their Dec meeting that they will commence a new program of outright treasury purchases when operation twist ends ) - should be Dollar negative and gold positive. Current market moves in everything is a bit unhinged as people reposition/speculate on the fiscal cliff - so best ignored - or taken advantage of by picking up selected stocks on sale. Chinese macro data strengthening, US macro data strengthening, Europe not as dire. Overall looks positive for equities going forward esp commodity related beaten up energy stocks etc.
    28 Nov 2012, 10:40 AM Reply Like
  •  
    Every losing trade I ever made was due to a "fat finger," and I would like them all reversed, please.
    28 Nov 2012, 11:23 AM Reply Like
  •  
    I agree that it is probably manipulation by JPM. Time to buy some more.
    28 Nov 2012, 12:24 PM Reply Like
  •  
    Gold seasonals usually move of sharply from late November. Will it this year?
    28 Nov 2012, 01:33 PM Reply Like
  •  
    Sharply up or down?
    28 Nov 2012, 03:08 PM Reply Like
  •  
    Annual gold seasonals usually move up from late November. Will they this year?
    28 Nov 2012, 01:33 PM Reply Like
  •  
    My guess is its manipulation, so that the big boys can get in at the best price at the gold, silver coming bullmarket.
    28 Nov 2012, 01:34 PM Reply Like
  •  
    "Somebody" bought a bunch of puts. Then "somebody" did a massive naked short sell. Just a hunch.
    28 Nov 2012, 01:55 PM Reply Like
  •  
    This a manipulation on the Comex, IMHO ... JP Morgan probably knows all about those shenanigans. This is crazy. What if people start asking for physical deliveries. My guess is that the exchange will then cancel physical deliveries and the futures will trade totally separate from the metals ... pure madness.
    28 Nov 2012, 02:06 PM Reply Like
  •  
    Gold hasn't bounced back, which, in all likelihood means that the buying of puts wasn't a mistake, but rather, an intentional hedge or straight out position trade.

    It makes sense, as gold could easily go lower from these levels, especially if the fiscal cliff is resolved and the markets move up.
    28 Nov 2012, 02:08 PM Reply Like
  •  
    Fiscal cliff is resolved. LAUGH!

    What a bunch of sheep. Did any of ya fools ever do some research on the US debts and liabilities? Probably not since many are on the payroll and entitlement bandwagon already.
    28 Nov 2012, 02:19 PM Reply Like
  •  
    In about a month we'll see whether it is resolved or not.

    "Did any of ya fools ever..."

    Of course not, we are all clueless, unlike you we have no money in the market, and come here to get a bit of your infinitum wisdom. Thanks.
    28 Nov 2012, 02:47 PM Reply Like
  •  
    Fiscal cliff is a scare propaganda tactic to get some real easy money printing to continue. FHA and students loans gone wild. Two criminal organizations doling out credit and defaults exploding.

    The debt ceiling will be upped again and again and again. The Bernank will continue monetizing debts. This chump may own the all in short order. INsane.
    28 Nov 2012, 06:05 PM Reply Like
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