Sudden Gold Plunge

If you were watching the price of gold today, you know that it was hit pretty hard within seconds. It plunged $30 in a matter of seconds. As a result of this, the gold market was halted for 10 seconds. Since then the price recovered. Commentators on CNBC are confused about what happened. While this kind of price action can be annoying, I am not surprised at all. During 2013, there were plenty of days that when I woke up the price of gold got smashed during illiquid trading in Asia. Actually, I remember waking up every day thinking, “What are they going to do to it this morning?” I am shocked that so far in 2014, I wake up and gold is not down $30 to $40 per ounce.

I am not saying that there is manipulation by the Fed of anything like this but there are definitely players in the market that are trying to push gold around one way or another. What is interesting about today’s plunge is that gold price was approaching an important resistance from technical point of view. Can you imagine what the commentators on CNBC would say if the Dow did something like this? But since it is gold, well no big deal. But there are miners out there that are struggling to stay alive because some players want to play such games.