July 6, 2022

November Gold Drop of 5.5% Worst in 35 Years as “Unidentified Sellers” Continue to Dump Gold

tenth oz gold-eaglesNovember was a miserable month for gold investors as prices dropped by 5.5% for the Worst November in 35 Years.  Adding to the misery, gold is almost certain to have its first yearly decline after rising 12 years in a row.

NEW YORK—Gold prices logged their worst November since 1978 as a brighter economic landscape fanned fears of reduced stimulus efforts by the Federal Reserve.

Gold prices dropped 5.5% in November. The declines help put gold on track to end 2013 in negative territory, disrupting a 12-year winning streak that saw the precious metal set price records.

“Nothing goes up forever,” said Frank McGhee, a senior precious-metals dealer with Integrated Brokerage Services LLC. in Chicago.

“You’ve got the beginning of an economic pickup without any inflationary signs…[and] you have the specter of the end of easy money, and that’s bearish for gold,” Mr. McGhee said.

A record-breaking rally in U.S. equities also lured many traders away from the precious-metals market. On Friday, the S&P 500 touched a record high of 1813.

Gold’s losses haven’t been limited to the futures market, analysts at Barclays PLC said. Exchange-traded funds backed by physical gold, which take the hassle out of purchasing and storing physical gold for individual investors, have seen their holdings drop 38.4 metric tons through Nov. 26 as sales picked up from the prior month.

Still, November is far from the worst month for the precious metal—gold prices fell 12% this June and nearly 18% in October 2008.

Investors in both gold and silver are looking at losses as precious metal prices decline despite record demand for physical gold and silver.

money printing

Exactly who is causing the price of gold to drop by indiscriminately dumping gold  remains an intriguing mystery that the major news organizations have essentially ignored.   Zero Hedge recently questioned why a rational seller would dump large amounts of gold at odd hours into illiquid markets unless they were deliberately trying to drive the price of gold down.

Shortly after 1amET this morning, someone with no apparent fiduciary duty to their client’s for best execution or any apparent trade allocation expertise decided it was time to dump 1500 contracts into an entirely illiquid gold futures market. The 150,000 ounce notional sell order ($184.5 million), captured graphically by Nanex, sent the price down $10 instaneously, tripped the exchange’s circuit breakers and halted the market’s trading for 20 seconds (once again). This is now the 4th market halt in the past 3 months (and this time on no news whatsoever), as the manipulative monkey-hammerings from who knows whom (BIS?) is becoming increasingly obvious.

Via Nanex,

This sort of thing is happening far too often: see also the drops on April 12, 2013, September 12, 2013, October 11, 2013 and November 20, 2013 which also resulted in trading halts.

Will the mystery of who hates gold ever be solved?

gold-buffalo

As documented many times by the Gold Anti-Trust Action Committee (GATA), the “fat finger” on the gold manipulation button seems to have its origins at the highest levels of government and central banks; this being the case, no one should hold their breath waiting for an honest explanation of the mystery of pricing in the gold market.

Comments

  1. I, like many of you, watch KITCO’s graph’s all the time… I noticed that when the Hong Kong market opens, AU AG drop and vibrate…. I wake up in the middle of the night and that’s when the sharp drops occur.

  2. “Exactly who is causing the price of gold to drop by indiscriminately dumping gold”.

    I think you mean who is dumping “paper gold”. It’s pretty bloody obvious. It is without a shadow of a doubt the US Government/Federal Reserve in a futile attempt to protect their terminally sick US dollar. Demand for gold bullion is enormous and is easily outstripping global mining production. The gold in the ETFs is leaving the UK, being refined into 1kg bars in Switzerland and then heading to China. When the ETFs have been drained of all their gold it is game over for the criminals who run the US/UK financial empire.

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