Post-Close Algo Acrobatics Send Gold Sliding, Spiking
Trading gold now-days is like giving away your money : sooner or later they are gong to get you
techmac:
Trading gold now-days is like giving away your money : sooner or later they are gong to get you
Trading gold now-days is like giving away your money : sooner or later they are gong to get you
All those similar to paper gold are, due to it's nature (known volume), highly eligible for HFT trading. Soon men will not be able to trade commodities (to compete with computers), and it is just a matter of time when will they find a way to do the same thing with forex. All we can do is hope that they do not kill our accounts before we understand how to fight back (or better yet - adapt)
Guess you are right : without HFT, we are not going to be competitive any more
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As if by magic, the 'spike' lower has been fully retraced with a 'spike' higher. Of course, in the preceding sentence one should replace "magic" with a selling algo suddenly taking out the bid stack simple because it is programmed to do so, only for another algo to step in and try to make the entire move less obvious, in the process showing just how much of a farce price discovery in paper gold has become...
With markets quiet, what better time than now to smash the 'price' of spot gold lower than the moment US futures close and all that is left are a few Spot FX traders. Of course this makes perfect sense for any 'rational' bullion seller looking to unwind a position (or even a short looking to set out a decent trade) - wait until there is no liquidity so that your price action culls the order book and leaves you with anything but 'best execution' - but then again, when you don't have to worry about MtM, that doesn't matter. It seems that while the volume cat's away, the gold manipulators will play...
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