Monday’s gold market manipulation blamed on a ‘fat finger’

By Shepard Ambellas

The recent flash crash of gold futures Monday is raising concern amongst investors

NEW YORK (INTELLIHUB) — The Comex division of the New York Mercantile Exchange experienced a brief but steep drop Monday, signifying that price manipulation in the gold market is alive and well.

Prices fell rapidly Monday, about $30 an ounce in a flash crash from $1245 to about $1215, in what appears to have been a massive manipulation of the February gold futures market, knocking it down -0.42%.

However, despite the obvious, the senior analyst at Price Futures Group, Phil Flynn, stated that it’s likely the flash crash was caused by a “fat finger”, passing the blame onto a boogeyman that simply doesn’t exist. In layman’s terms, a “fat finger” would be equivalent to the Osama Bin Laden lie in the war on terror.

Market Watch reported:

Meanwhile, Ross Norman, chief executive officer at Sharps Pixley, said that the move “looks to be shorts defending their substantial positions.”  But “some of us have doubts, which makes gold a steal at these prices,” he said. “In fact, [it’s] the cheapest insurance in town against economic difficulties.”

February gold was last up $1.80, or 0.2%, at $1,240.40 an ounce on Comex.

As of yet it’s unknown where the gold market is headed for 2014 since manipulation is a factor.

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