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Short-lived Market Dislocation in Gold and the Dollar

CalGoldCalGold Posts: 2,608 ✭✭
in Precious Metals
What caused this spike in gold and corresponding nose dive in the dollar?

What caused this fleeting spike in gold, with a corresponding brief nose dive in the dollar?

image

LINK TO DOLLAR CHART


CG

Comments

  • jmski52jmski52 Posts: 22,795 ✭✭✭✭✭
    I was looking at that, too. I have no idea what the cause was. What's your explanation?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • CladiatorCladiator Posts: 18,038 ✭✭✭✭✭
    Gremlins
  • 57loaded57loaded Posts: 4,967 ✭✭✭
    someone was asleep at the PPT for a moment

    yet it i'm curious, too as to the spike and fall
  • fcfc Posts: 12,793 ✭✭✭
    what seems logical to me is automatic trading done by computers for the
    traders. a drop in the dollar set off programs that bought gold.
    human intervention stopped it when it appeared to happen for no good reason
    and things went back to normal.

    so that may explain gold... but it does not explain what caused the dollar to do
    what it did and set off chain reactions.

    my two cents and i need to get a better representation of the timing via charts...
    i am pretty sure the dollar fell first but it would be nice to verify that.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    Nothing to see here. This is a gold market trading quite normally (massive spikes and crashes for no apparent reason). Been making "V's" like this for years. Why are we questioning it now?? Do you think the PPT doesn't want to see a daily close above $750 for quite some time (lol)

    roadrunner
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • Coll3ctorColl3ctor Posts: 3,333 ✭✭✭
    "Nothing to see here."




    Move along folks..........
  • Coll3ctorColl3ctor Posts: 3,333 ✭✭✭
    "what seems logical"



    Are you from the Star Trek: Enterprise image
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>Nothing to see here. This is a gold market trading quite normally (massive spikes and crashes for no apparent reason). Been making "V's" like this for years. Why are we questioning it now?? Do you think the PPT doesn't want to see a daily close above $750 for quite some time (lol)

    roadrunner >>



    They just got their signals backward at 10 AM this time.

    You know, you do something often enough and it's just possible to push the wrong button.

    Rare, but it could happen. Like putting your car in drive instead of reverse when backing out your driveway.

    Much ado about nothing.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • fcfc Posts: 12,793 ✭✭✭


    << <i>"what seems logical"



    Are you from the Star Trek: Enterprise image >>



    nope... but take the stock market dropping at the end of trading hours
    today. It happened right after the Fed minutes were released. very
    disturbing information for stock owners. it could possibly explain
    why the market acted like it did.

    today gold did an up and down zig zag and we can only guess why.
    i am guessing the dollar did the zig first and gold followed in the opposite directions.

    maybe someone here knows why the dollar did that and can explain
    it rationally and logically without bringing up conspiracy/manipulation theories which
    do not even make constructive conversation about the topic at hand.
  • OverdateOverdate Posts: 7,007 ✭✭✭✭✭
    Obviously the fundamentals for gold improved by $30 and then declined by $30 within a few hours. image

    My Adolph A. Weinman signature :)

  • RedTigerRedTiger Posts: 5,608 ✭
    Options on futures (gold, dollar, etc) expire tomorrow. Options on stocks on Friday.

    A lot of Wednesday swing action is related to option expiration, in all markets. Used to be most of the wild stock market action was on Friday, but they moved up some expirations to Thursday, so now a lot of traders make moves on Wednesday.
    Investment blog: gold, stocks and more
  • bumanchubumanchu Posts: 1,383 ✭✭✭




    << <i>maybe someone here knows why the dollar did that and can explain
    it rationally and logically without bringing up conspiracy/manipulation theories which
    do not even make constructive conversation about the topic at hand. >>




    Hopefully so, fc, and you can "harp" on that a whileimage
    And I ain't lying this time.
  • COINB0YCOINB0Y Posts: 4,505
    A transaction by more Arabs of turning fiat Petro-Dollars into Gold Bullion
  • DeadhorseDeadhorse Posts: 3,720 ✭


    << <i>Obviously the fundamentals for gold improved by $30 and then declined by $30 within a few hours. image >>



    That pretty much happens everyday. Seems to decline around 10 AM as well.

    Most unusual, but to suggest anything but natural market forces will bring at least one pinhead coming after you.
    "Lenin is certainly right. There is no subtler or more severe means of overturning the existing basis of society(destroy capitalism) than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and it does it in a manner which not one man in a million is able to diagnose."
    John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
  • notwilightnotwilight Posts: 12,864 ✭✭✭
    Somebody exceuting a large buy order accidently typed two extra 0's. They then had to sell of the accidently purchased gold, bringing everything back to where it was except he lost his shorts on the spread. --jerry
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