Gold News: Was Gold Dumped Last Friday?

Gold bulls had a rough day Friday. Starting at the Comex open at 8 AM Eastern time, LOTS of paper gold was ‘dumped’ on the exchange. Or was it? Gold news can be more complex than it seems on the surface.

There is ongoing debate whether gold markets are actively manipulated; regular readers already know this Gold Enthusiast’s answer to that question. Because the markets are in general anonymous, it’s hard to know for sure. If someone or something is trying to push the market one way or the other, it is difficult-to-impossible to know in the moment, given the geographically- and regulation-diverse state of the total gold market.  That means big trades in one country end up affecting the price of gold in other countries, without knowing whodunnit.

This leads to the possibility that, say, a trader on the New York market could drop the price by selling, oh, about 9 million ounces in an hour. This in turn means folks in the Asian markets can pick up gold cheaper the next day, despite no one in Asia pushing for lower gold.  And thus the trader in New York has enabled gold transfer from the West to the East.

But before you hurt your brain pondering that possibility, you can get educated on Friday’s gold news in today’s featured article.  Your friendly Gold Enthusiast would have left off the last sentence as it seems completely out of the blue, but apparently someone has a bone to pick.

 Related: The Dollar is Growing Stronger. Here’s What This Means for Gold.