There has been a great deal of talk about intervention in the currency markets and especially in gold and silver of late. Zero Hedge has done a great job investigating the central banks' banker called the Bank for International Settlements or the B.I.S.. Yeasterday gold dropped almost $15 out of the blue and many in the mainstream are saying that it was a "fat finger" which happens when a trader or a broker input the wrong price and/or amount onto their trading systems thereby causing unusual price movements

We at For Sound Money have been closely following the price of gold for many years and we do not buy the talk of a "fat finger" and would tend to side with Zero Hedge and put these sharp moves, usually down, to intervention or manipulation by the Western central banks and their agents. The Bank of England, for example, even admits it on their website that they operate in the foreign exchange and the gold markets.

The trend that we and others have noticed in the last decade is that the Asians usaully buy gold overnight and then the Americans sell it when their markets open from around 8AM New York time. As you can see from the chart below the gold price once again dropped sharply during U.S. hours (chart is London time or 5 hours ahead of EST) today after looking like it was ready to break out through the $1670 level. Could it really be that we have gotten a case of two "fat fingers" in two days or is t more a case of price management by the central banks?

By Mario Innecco
ForSoundMoney.com

At ForSoundMoney we stand for a hard currency. We believe in a monetary system based on commodity money and a free-market banking system where central banks are non-existant.

Mario Innecco Archive

Comments

B. TEMEL
02 May 12, 01:26

FAT FINGERS

I can say that the one who made such price movements is a fat one but not his fingers.

Francis Hunt
02 May 12, 14:51

gold Manipulation?

Hi,

Here is a video response to manipulation... that involves the 5 primary bullion banks and the morning and PM fix..

http://www.youtube.com/watch?v=cMTIyLZcjYU

Having posted Paul Tustains view... it does not explain dropping 7500 contracts on to a illiquid market in one go... ie .. not for profit selling

Enjoy.

Francis

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