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.
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.