This just frosts me. This is a blatant attempt, probably by the Treasury, to depress the price of gold. Crap like this has been happening for years and the media just turns a blind eye towards it.
What you are seeing in the chart below of the gold price from Wednesday to Friday is short selling of paper gold on a massive scale. In other words, borrowing a large amount of Gold ETFs which may or may not actually represent physical gold (probably not) and selling it.
What is "supposed" to happen is that the price gets depressed for a while afterwards, and then they buy that amount back at a lower price and repay the borrowed ETFs.
It didn't work the first time on Thursday (red line). After an initial drop (caused by mindless automatic programs) the price bounced right back to what it was before when they bought back the ETFs...and then started going up. So they did it again the next day (Friday - red line), and this time it dropped, but when they bought back the ETFs, it came back up to what it was before the first time they did it.
Like I said, this has been happening for years. Everyone in the gold market knows what's happening, that's why it often doesn't work for more than a couple of hours some times. Nobody but the automatic programs is fooled.
Short selling should be outlawed for physical commodities. It's impossible to actually short physical gold this way.
What you are seeing in the chart below of the gold price from Wednesday to Friday is short selling of paper gold on a massive scale. In other words, borrowing a large amount of Gold ETFs which may or may not actually represent physical gold (probably not) and selling it.
What is "supposed" to happen is that the price gets depressed for a while afterwards, and then they buy that amount back at a lower price and repay the borrowed ETFs.
It didn't work the first time on Thursday (red line). After an initial drop (caused by mindless automatic programs) the price bounced right back to what it was before when they bought back the ETFs...and then started going up. So they did it again the next day (Friday - red line), and this time it dropped, but when they bought back the ETFs, it came back up to what it was before the first time they did it.
Like I said, this has been happening for years. Everyone in the gold market knows what's happening, that's why it often doesn't work for more than a couple of hours some times. Nobody but the automatic programs is fooled.
Short selling should be outlawed for physical commodities. It's impossible to actually short physical gold this way.