Around 1030pm MST or 12:30am EST, gold started to fall off a cliff due to the “Dubai default news”. Supposedly this was a mini black swan event in which the market did not see it coming. In 2 hours, gold when from 1185 to 1135. A 50 point drop! For those who do not trade futures, gold is traded in 10 cent increments, which each 10 cent increment worth $10. So, a 10 point move in gold is 1k. You need apx 5k to trade 1 contract of gold. What is more amazing if the rally as it retraced 79% of the fall. So, if you were long gold on weds, you were down 10-15 points if you woke up on Friday and looked at the closing price.
Someone made a mini fortune on either end of this drop and rally…but on a late Thanksgiving night/ wee hours of Black Friday?
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