“DID YOU SEE WHAT THOSE BASTARDS JUST DID?” my friend Mark screamed at me in a text message last Sunday night.
Mark is a big-time gold trader. He’s also a big-time conspiracy theorist. And on Sunday, those two sides of Mark came together.
Not much was happening when the gold futures contracts opened for trading on Sunday night.
The near-term contract closed trading on Friday at about $1,984 per ounce. That’s just about where it opened for trading on Sunday.
But by 9 p.m. ET, gold collapsed.
Take a look…
Somebody dumped 4,000 gold futures contracts onto the market. That’s nearly $8 million worth of gold futures hitting the tape all at once on a Sunday night – when most traders are absent.
Who would do that? Who would liquidate a large pile of futures contracts into an illiquid market?
And, more importantly, why would they do that?
“IT’S A CONSPIRACY!” Mark’s text continued. “THEY’RE MANIPULATING THE MARKET!”
Maybe he’s right.
After all, the gold market has long been a battleground for central bankers and institutions that prefer to have the price of gold move in one direction.
It’s also home to many speculators who suspect the world is about to end. And, in that battle, the central bankers win the short-term direction because they have more money.
So Mark isn’t wrong. The price action in gold on Sunday night did reek of manipulation.
But was it a conspiracy?
Not really.
Conspiracies are done in secret. Conspirators meet behind closed doors. They plan their actions in private. And they take great pains not to leave any trace of what they’ve done.
That’s not how it happens in the gold market.
It’s no secret who the big players are in the gold market. It’s not hard to tell when the big players are pushing prices around.
There’s no attempt to hide it. And that’s actually a good thing.
You see, when there’s a big move in the price of gold – and some sort of news event can’t explain it – you can be fairly certain that the big players are moving the price. That action provides clues as to where the price of gold and gold stocks are headed next.
It’s been happening for at least the four decades in which I’ve been trading the gold market. And that information has been a source of enormous profits throughout my career.
On Monday, October 30, at 11 a.m. ET, I’ll be hosting a special event to help explain this gold anomaly. I’ll tell you who the big players are. I’ll tell you how to spot their actions in the market.
And, most important, I’ll show you how to profit from this knowledge. You can sign up for that right here.
The trading action in gold and gold stocks is just starting to heat up. We’ll likely see big moves in both directions for this sector in the months and years to come. Traders will have many opportunities to earn short-term, triple-digit gains.
On Monday, I’ll show you how to do it.
Best regards & good trading,
Jeff Clark
Editor, Market Minute