Author: Geoff Candy
Posted: Tuesday , 07 Jan 2014
GRONINGEN (MINEWEB) -
While gold has started 2014 on a firmer footing than some might have expected, if recent trading patterns are anything to go by, the watchword for 2014 will be volatility.
The first of these patterns is choppy trade on the futures market, which has been noted a number of times in these pages.
In this, yesterday’s US trading session is instructive, after rallying on purchasing managers index data that showed a slow down in growth in the US in December, the gains were erased by what looks to have been a large, sell order on the futures market.
“These kinds of price movements are becoming very common, and it seems some players are putting in very large orders to trigger this kind of slump,” Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, told Bloomberg in a telephone interview. “The exchange needs to look into these kind of spikes.”
The second short term factor facing gold is seasonal index rebalancing ...