Look, here’s the thing: you say “tomato“, I say “tomahto.”
Just like you say “glitch that caused silver to flash crash” and I say “consequence of batshit crazy market microstructure.”
Whatever the case, this just happened:
You recall that it was just a couple of weeks ago when gold inexplicably nosedived in a move that was promptly attributed to a “fat finger”, “muppet” trade.
This time, the market snapped back, which is likely to dispel the notion that this was more than a temporary fuck up, but whatever the case, it doesn’t say much for the stability of modern markets.
As David Govett, head of precious metals trading at Marex Spectron Group in London told Bloomberg after the gold incident, “these moves are going to become more widespread with the way things are going and the more they happen, the worse they will become as people back away from holding positions.”
As for the market’s go-to on these matters, Nanex is headed home…