Almost laughable to see how anti-gold UBS explained yesterday's counterintuitive move in gold. "A messy execution of a large sell order"... yeah right as da boyz executed the sell order(s) exactly according to their suppressive plan to maximize the effect.
June 24, 2008 5:19:15 AM
UBS Metals Daily
Author: John Reade
Gold drops $25/oz in 32 minutes
Although to be honest, it seemed quicker than that. Gold started to weaken around 1pm in pre-US trading and then collapsed as Comex opened, trading as low as $876/oz after an early European high of about $907/oz. There was no obvious news trigger for the move - one of the news wires ran the story about Vietnam suspending gold imports in the midst of the sell-off, but that was old news that had been circulating in the market since the morning and anyway was not really that significant. We saw no major selling that triggered the move and are not buyers into any conspiracies about central banks intervening in the gold market to push down the gold price or strengthen the dollar - we heard both theories yesterday and discount them. Rather it seems that a large sale order was messily executed in a period of poor liquidity - the half hour before the Comex open is one of the quietest times of the day in the gold market - and the market simply could not absorb the selling, and stops were triggered, running into one-another. During the US session, Comex gold closed $884.75-85.25 after an opening high of $901.75-02.25 and low at $875.78-76.25. After trading to the lows soon after the open, gold finally found some support in the mid $870s and then managed to trade a little higher on the move in WTI up to $138/bbl. This helped gold climb back into a $882-885 range into the close.
