http://www.mineweb.com/mineweb/content/en/mineweb-gold-analysis?oid=221594&sn=Detail
Much has been made, particularly by the gold and silver bulls, of
High Frequency Trading (HFT) by the mega banks like JP Morgan and
Goldman Sachs as the possible (or probable) reason for some of the big
take-downs in the respective metals prices which seem to have been
occurring with increasing frequency over the past two years.
Trading patterns have been illogical with huge selling orders
of paper metal into the futures markets, usually at a time of day when
markets are thin, thus driving prices down enormously, and prompting
even more stop loss sales from algorithmic computer trading programs.
It is felt that no trader would sell in this manner as it hugely reduces
any trading profits that might be made on the downs, although can lead
to substantial profits being taken on any subsequent recovery.
I think we are close to a bottom in gold finally my friend. Perhaps Monday marks the bottom??
ReplyDeleteI sure hope so PW, it looks promising for sure.
ReplyDelete