by Joseph Cafariello
In an age when computer trading programs seem to take over the show at times, it is natural to call foul in the event of an unexpected and severe market sell-off.
Only some time after the event does a plausible explanation come to light, which most often turns out to be just normal trading activity, its effect amplified by today’s growing trading volumes and ever-increasing automation.
But what if that severe sell-off hits a market as liquid and heavily-traded as gold? And what if that gold price remains depressed for weeks or months, despite a scarce supply that by all reports is clearly unable to fill a clamoring demand? Is there a strong hand holding it down?