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Thursday, October 03, 2013

Gold on sale as "one big seller" reportedly takes down price amid shutdown

http://www.blanchardonline.com/investing-news-blog/econ.php?article=6443&title=Gold_on_sale_as_%22one_big_seller%22_reportedly_takes_down_price_amid_shutdown

What caused the plunge: Gold shed about $40 just after the opening of the New York trading session, and one look at the chart confirms the market rumors: A single big seller is to blame. "It's obvious it has to be a fund that is just now forced into liquidation" at the start of the third quarter, one floor trader told Reuters. "We heard there was one big seller," confirmed an HSBC analyst. Added a Stifel Nicolaus strategist: "Around 8:40 (a.m.) when the bottom really came out of the metal, a billion dollars worth traded in the futures pit over a 10-minute period. I think a fair amount of it was stop losses when it took out the September low, and once it hit $1,300, it took out more."

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