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Another Billion Dollar Gold Sale At Illiquid Trading Hours

Overnight someone sold 1.2 million ounces of gold and it brought the price of gold down $12. That’s about a billion dollar trade. Here’s the chart showing the liquidation. As ZeroHedge writes,

For the 5th day in a row, “someone” has decided that 0030ET would be an appropriate time(assuming the ‘seller’ is an investor who prefers best execution rather than the standard non-economically-rational share-repurchaser in America) to be dumping large amounts of precious metals positions via the futures market. Tonight, with over 13,000 contracts being flushed through Gold – amounting to over $1.5 billion notional, gold prices tumbled $20 to $1151 (its lowest level since April 2010). Silver is well through $16 and back at Feb 2010 lows. The USDollar is also surging.


Gold has not rebounded from western softness in Chinese trading, and has only trend downwards. At press, gold is trading $15 in the eastern markets.

In July 2014 a similar trade took place in illiquid hours.

As Mark O’Byrne writes,

Massive concentrated selling on the futures market at times when there was no breaking news or market moving developments led to sharp price falls yesterday. Nearly $1.5 billion of gold futures contracts was dumped on the market in minutes at the open on the COMEX.

The selling was confined to the paper market as mints, refineries and dealers did not report any sudden bout of selling. Indeed, holdings in the largest gold exchange-traded product expanded to the highest level since April yesterday.

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