Dave Kranzler of Investment Research Dynamics today quotes an explanation for today's central bank flash crash in gold, provided by gold market analyst John Brimelow of John Brimelow's Gold Jottings report:
"The day was well chosen as the Muslim world including Turkey was closed for the end of Ramadan, as was India, which has the amiable habit of observing the holidays of religious minorities."
Kranzler adds: "Four a.m. Eastern time is one of the slowest, lowest-volume trading periods during any 24-hour period. Why would a seller of a large number of contracts sell at that time of day when the largest buyers of what is being sold are not in the market at the time of the sale?"
He answers his own question: "to scare the crap out of the market."
Kranzler's commentary is headlined "Central Bank Intervention Slams Paper Gold" and it's posted at the IRD internet site here:
http://investmentresearchdynamics.com/central...ion-slams-pa...
