swissaustrian
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During the last days, something extremely rare happened in pm markets.
Gold was more volatile on the downside than silver, platinum and palladium.
This shouldn't be the case for numerous reasons:
a) the gold market is the most liquid market
b) gold has practically no industrial uses (yet), it's really the pure currency amoung pms. Therefore it has historically traded like a currency.
If you look even further on an intraday basis, you can observe that the volatility started when London (LBMA) opened and really got wild when US markets opened (8 am ET).
Now one can scream MANIPULATION, yes. But this is an insufficient explanation imho. Additionally, it seems to be a clear sign to me that paper gold is currently going mainstream. Trading volume indicates that a lot of weak hands / newbies have entered the market recently. These are not necessarily retail investors, but maybe even inexperienced (as far as pms are concerned) institutionals who are selling at the first bigger correction.
Fasten your seatbelts, we have some crazy moves ahead. :flail:
Gold was more volatile on the downside than silver, platinum and palladium.
This shouldn't be the case for numerous reasons:
a) the gold market is the most liquid market
b) gold has practically no industrial uses (yet), it's really the pure currency amoung pms. Therefore it has historically traded like a currency.
If you look even further on an intraday basis, you can observe that the volatility started when London (LBMA) opened and really got wild when US markets opened (8 am ET).
Now one can scream MANIPULATION, yes. But this is an insufficient explanation imho. Additionally, it seems to be a clear sign to me that paper gold is currently going mainstream. Trading volume indicates that a lot of weak hands / newbies have entered the market recently. These are not necessarily retail investors, but maybe even inexperienced (as far as pms are concerned) institutionals who are selling at the first bigger correction.
Fasten your seatbelts, we have some crazy moves ahead. :flail: