Just in:
Sharpening the Focus: Sharjah Health Department Refines Evaluation Criteria for “Healthy Schools Programme” // Andertoons by Mark Anderson for Thu, 28 Mar 2024 // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // No running of govt from jail, says Delhi Lt Governor // Emirati Aid Reaches Ukraine as Food Shortages Bite // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Renewables Surge Sets Record, But Global Equity Lags // US reiterates concern over Kejriwal arrest, Cong accounts // Hullabaloo About Electoral Bonds May End Up As A Whimper Pre And Post Poll // Arvind Kejriwal Gets International Heft Against The Deshi Vishwaguru // AI Boost for Galaxy Devices: Samsung Expands One UI 6.1 Update // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Superland Announced Annual Results for 2023, 2023 Net Profit Increased approximately 39.5% to approximately HK$22.2 million as Compared to the 2022 Adjusted One // Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // In Lok Sabha Polls In Punjab, AAP Is Advantageously Placed As Against Its Three Rivals // Experts come together to support updating the city’s nature conservation masterplan // Ajman Celebrates Conclusion of Ramadan Activities with Grand Ceremony // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Court Sides with Coinbase on Wallet Service, But Staking Program Remains in Limbo // German Job Market Resilience Bodes Well for Economic Recovery //
HomeChannelsFeaturedGold plunges after 1.8m ounces traded in one minute

Gold plunges after 1.8m ounces traded in one minute

1x 1

|By Arabian Post Staff| Gold plunged after trading volume hit 1.8 million ounces in just one minute and gold traders were shaken by the plunge, Bloomberg reported.

Gold traders shaken awake by Monday’s rapid price plunge said the move probably won’t mean an end to the sleepy pace that’s characterized the market in recent months.

Bullion sank at 9 a.m. in London on Monday after a huge spike in volume in New York futures that traders said may have been the result of a “fat finger,” or erroneous order. Trading jumped to 1.8 million ounces of gold in just a minute, an amount that’s bigger than the gold reserves of Finland

ADVERTISEMENT

The episode is unlikely to upend the broader trend in gold, where volatility has languished, analysts including George Gero at RBC Wealth Management said. A measure of price swings in the metal fell in April to the lowest in records going back to 2007. It’s since held near that level, even amid political discord in Europe, rising U.S. interest rates and mounting tensions between the U.S. and North Korea.

“You haven’t seen volatility when volatility was warranted,” said Gero, a New York-based managing director at RBC. “You’ve got a host of important matters that could have moved gold much more than they did. Whenever there’s an event-driven rally, it doesn’t seem to last.”

Some 18,149 lots were traded on Comex in just a minute on Monday, before falling back to 2,334 lots an hour later.

Gold futures fell as much as 1.6 percent to $1,236.50 an ounce on the Comex, the lowest for a most-active contract since May 17. The metal for August delivery traded at $1,245.90 an ounce at 1:05 p.m. in Singapore on Tuesday.

“No one has a clue, apart from the unfortunate individual that pressed the wrong button,” David Govett, head of precious metals trading at Marex Spectron Group in London, said of the spike in volume. Thin activity and automated trading may exacerbate such moves, he said.

Others said a trader may have made a larger order than intended, or underestimated the market’s ability to absorb so much gold.

“This bears the hallmarks of a fat-finger ‘Muppet’ — a trade of 18,149 ounces would be a very typical trade, but a trade of 18,149 lots of a futures contract (which is 100 times bigger) would not be,” Ross Norman, chief executive officer of Sharps Pixley Ltd., a London-based precious-metals dealer, said in a note.

“It leaves us wondering if a junior had got confused between ‘ounces’ and ‘lots,’” Norman said.

Rising use of computer-driven algorithmic trading has often been blamed for extraordinary movements in financial markets, known as flash crashes, in recent years.

“These moves are going to become more widespread with the way things are going,” Govett said by email. “The more they happen, the worse they will become as people back away from holding positions.”

While speculation mounted on what triggered Monday’s move, analysts said the effect was compounded by thin trading amid holidays in countries including Singapore and Malaysia.

Brad Yates, head of trading for U.S. gold refiner Elemetal, said the low volatility seen in gold and other markets including equities will probably linger for a little while longer.

“We expect to see volatility in gold along with other assets pick up some time in the fourth quarter,” said Yates. “From a bigger perspective, gold’s suppressed volatility is symptomatic of everything else in the macro market. In the meantime, we are subject to short-lived shocks, followed by extended periods of quiet.” (With Bloomberg)

ADVERTISEMENT

ADVERTISEMENT
Just in:
AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // Court Sides with Coinbase on Wallet Service, But Staking Program Remains in Limbo // No running of govt from jail, says Delhi Lt Governor // Ingdan Announces 2023 Annual Results // Emirati Aid Reaches Ukraine as Food Shortages Bite // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // Ajman Celebrates Conclusion of Ramadan Activities with Grand Ceremony // Hullabaloo About Electoral Bonds May End Up As A Whimper Pre And Post Poll // Andertoons by Mark Anderson for Thu, 28 Mar 2024 // Party Nominees Refusing To Contest: Major Perception Threat For BJP // Lisboeta Macau’s world first LINE FRIENDS PRESENTS CASA DE AMIGO and BROWN & FRIENDS CAFE & BISTRO has officially opened // Arvind Kejriwal Was Used By BJP In 2011 Movement To Take On The Congress // Konica Minolta is named ASEAN 2023 Market Leader in Colour Light and Mid Digital Production Printers // Sunshine’s Debut Features Leave Tech World Scratching Its Head // Arvind Kejriwal Gets International Heft Against The Deshi Vishwaguru // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // Emirates Post Speeds Up Deliveries for GCC with Special Day // Meta Earth Official Website Launch: The Pioneer Explorer in the Modular Public Blockchain Domain // In Lok Sabha Polls In Punjab, AAP Is Advantageously Placed As Against Its Three Rivals // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters //