Gold crashing on Monday. Slight recovery yesterday. Stocks crashed on Monday too. Now surging.
What happened to gold? No one knows. There were reports of a 124.4 ton sell order from an investment bank on Friday morning. But from whom? Why? Nobody knows.
The CME's Comex unit is making it more expensive for speculators to trade after gold fell the most in 33 years today, dropping to the lowest since February 2011, after prices entered a bear market last week. Silver, also in a bear market, slumped 11% today and extended the year's loss to 23%.
In the financial markets, we spend most of our time waiting for something to happen. When years go by and nothing happens, we assume that nothing will ever happen. When it does happen, we are totally surprised.
Is something happening now? A major change of direction? Is another shoe dropping?