Whatever the reason,
gold just had its biggest flash crash in nearly two years,
as a targeted stop hunt launched by the dumping of $2.7 billion
notional in product, accelerates the capitulation of the momentum
buyers (and in this case sellers) pushing gold to a level not seen
almost since 2009.
The price appears to have rebounded after the initial shock, up
about $20 from the intraday low of $1,086 but we expect that to be
retested shortly, and for gold to plunge further into triple
digits, at which point gold miners will simply cease to produce the
metal whose all-in production
cost is in the $1100 and higher range, when it will also become
clear that only derivatives and "paper" are the marginal "price"
setters.
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From Zero Hedge
Gold Futures Down in Asia
Posted by whs956 on 19th of Jul 2015 at 11:13 pm
Whatever the reason, gold just had its biggest flash crash in nearly two years, as a targeted stop hunt launched by the dumping of $2.7 billion notional in product, accelerates the capitulation of the momentum buyers (and in this case sellers) pushing gold to a level not seen almost since 2009.
The price appears to have rebounded after the initial shock, up about $20 from the intraday low of $1,086 but we expect that to be retested shortly, and for gold to plunge further into triple digits, at which point gold miners will simply cease to produce the metal whose all-in production cost is in the $1100 and higher range, when it will also become clear that only derivatives and "paper" are the marginal "price" setters.