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The ghosts of January past return: Gold
The sell-off, estimated to be on the equivalent of around 3000 Comex gold futures contracts took place at around 10.34 am Sydney time or at about 6.34 pm ET on a Sunday evening. Exacerbating thin volumes typical at this time of the day and week, the Martin Luther King public holiday in the US. Although we will never know for sure, due to the unusual timing of the move, my guess is the sell-down was the result of an execution error, triggering stop-loss orders placed below last Friday's $1823 low. Adding to the impact, algorithms using correlation analysis, arbitrage, and linked orders then triggered stops in gold's ... (full story)