“Gold had a ‘mini flash-crash’ in Asian trade on Monday, with the price falling almost 4% in a matter of seconds.  A huge dump of bullion, equivalent to one-fifth of a whole day’s trade in a normal session, came on the market in China this morning in a two-minute window.  ANZ Bank analyst Victor Thianpiriya said that the ‘nature, size and timing of the heavy selling’ suggests someone ‘was taking advantage of low liquidity or some sort of forced selling had taken place.’  If it is ‘forced selling’ then we could be in for plenty more trouble. Forced selling generally means leveraged investors who have used borrowed money to buy gold are being forced to sell to pay back the borrowed cash.”

http://www.businessinsider.com/gold-price-flash-crash-caused-by-five-tonnes-of-chinese-bullion-2015-7

Did you like this?
Tip Freedomwat.ch Staff with Bitcoin

Donate via Installed Wallet Copy