This two hour chart of Gold shows an unfathomable movement which took place last night (Wednesday morning 13/8). Gold was breaking new highs at $1535 when suddenly a seller, or a number of sellers arrived to sell there holdings. This they did with vigour resulting in a drop of $56 to $1479. Clearly not a small retracement that you might expect to take place with a strongly trending commodity. No this was a big move that clearly removed everyone who had a position and a stop loss in place. No-one has a stop more than $56 from the current price. Neither is this standard profit taking that one might expect: are we to believe that the profit takers were so in earnest that they continued taking profit right down to a level $56 below the price. I don't believe so.
This looks to me much more like a manipulation of the commodity by a large player, who probably shorted Gold and then started selling short stock that they didn't have and continued to do so to take out any position with a reasonable stop in place. Many people probably had their position sold by the Brokers.
So if anyone has any suggestions as to why a whole heap of investors suddenly start selling their holdings, which are providing a better return than the S&P YTD, I would like your views. The only comment made is the one that Tramp has pushed out the 10% tariffs from Sept 1 to Dec 15. This "providing relief to the Stock Market". This is unconnected to Gold in any way, and are we to believe that these sellers were selling to invest in the Stock Market: I don't think so as many buyers in Gold are there specifically as a flight to safety. Our broker, IG Markets has an obligation to revue this activity as it is not normal, and bring it to the attention of the DOJ. I believe that the exchange for Gold is the NYME (New York Mercantile Exchange). Now it is very much in their interests to 'remove' profitable trades on their platform.