Was one trade responsible for a sudden $25 drop in the price of gold Friday morning?
The move lower — which happened in the space of 2 minutes and sent the yellow metal to a three-month low — is being blamed on a market order to sell 5K gold futures contracts, Nanex tells CNBC.
"About 2,700 went off and tripped the stop logic, halting gold futures for 10 seconds while liquidity replenished. When enough liquidity returned (after 10 seconds), the balance of about 2,300 completed," Nanex remarked.
The move appears to have affected silver, platinum, and even oil.
Gold -2.15%, silver -3%, platinum -1.7%, crude -1.6%