Gold Prices Take a Hit After Unusual Trading Activity

A flash crash in gold prices sent ripples through the commodities market late last month. Bloomberg reported that a sudden surge in trading activity caused gold futures to fall as much as 1.6 percent to $1,236.50 an ounce.

According to industry consensus, the drop was caused by an erroneous trading order that temporarily caused supply to outpace demand. On the morning of June 26, 18,149 lots of a gold futures contract (equivalent to about 1.8 million ounces of gold) were traded on Comex in the span of a minute. When combined with seasonally low trading volume in countries like Singapore and Malaysia, the market was unable to absorb such a large amount of gold, driving down the price.

Fortunately, the sudden plunge in gold prices is not indicative of a trend. In fact, gold has already recovered. Financial pundits are referring to the trade that kick-started the crash as a “fat-finger” error, which occurs when a trader accidentally submits a larger than intended order. If you want to be alerted to these kinds of price swings as they happen, don’t forget that you can use our Precious Metals Prices app to receive alerts via email or push notifications on your phone.

 

Manhattan Gold & Silver Update

We will be opening back up on May 18th, 2020 with limited hours from 11:00am – 2:00pm. The easiest method for metal processing is to either mail, or drop off/curbside service. Customers will not be allowed in the exchange at this time. 

If you have any questions you can still contact us at 212-398-1454 and sign up for our newsletter for further announcements.

Most importantly, please stay safe! 

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