Forget the myths that the media's created about the Fed. The truth is, these are not very bright guys and things got out of hand. Follow the money...just follow the money. - My paraphrase of "Deep Throat" from "All The President's Men"
The price of gold was remarkably smashed $35 in the space of 60 seconds at 10:14 a.m. NY time this morning. 12,000 contracts hit the market almost all at once. To put this size in context, on Friday a little over 107,000 Feb contracts traded during the entire 23 hour Globex system session. In other words, today at 10:14 a.m., a little over 11% of Friday's total volume traded in the space of 1/1380th of the entire Globex session for a given period.
The hit came from nowhere and halted a strong rally in the price of gold that began last night in Asia. Concurrently, the dollar was selling off hard, as was the S&P 500. There was no apparent news or event that would have triggered the price smash: