by Dominique de Kevelioc de Bailleulon May 01, 2012
Better late then never for a mainstream financial publication to notice what seasoned professionals of the gold market have known for decades—the gold market trades in mysterious ways. Sign-up for my 100% FREE Alerts
“The CME Group Inc.’s Comex division recorded an unusually large transaction of 7,500 gold futures during one minute of trading at 8:31 a.m. EDT,” Wall Street Journal’s Tatyana Shumsky penned in an Apr. 30 article, titled, Gold market shakes off $1.24 billion ‘fat finger’. “The sale took out blocks of bids as large as 84 contracts in one fell swoop and cut prices down to $1,648.80 a troy ounce. The overall transaction was worth more than $1.24 billion.”
Shumsky then writes that there is speculation among traders of a ‘fat finger’ in the market place that day—maybe a mistake, she reckons, maybe an “input error.”
Instead of calling up Bill Murphy or Chris Powell at Gold Anti-Trust Action Committee (GATA) for their take on such a peculiar trade, the gumshoe hound reported comments made by Citi traders, instead.
A ‘fat finger’, “or a Gold Finger as it might be known in the bullion market,” she quoted Citi traders in their note to clients regarding the incident.
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