{"id":1096149,"date":"2019-01-24T21:50:54","date_gmt":"2019-01-24T21:50:54","guid":{"rendered":"http:\/\/www.mining.com\/?p=965339"},"modified":"2019-01-24T21:50:54","modified_gmt":"2019-01-24T21:50:54","slug":"flashback-gold-price-fat-finger-56-tonnes-gone-in-60-seconds","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1096149","title":{"rendered":"FLASHBACK: Gold price fat finger \u2013 56 tonnes gone in 60 seconds"},"content":{"rendered":"

Shares in Jardine Matheson Holdings, a 186-year old firm listed in Singapore, plummeted 83% on Thursday, wiping more than $40 billion off the market value of the storied conglomerate.<\/p>\n

The stock quickly recovered and traders immediately pointed to the most likely reason for the strange dealings \u2013 a fat finger.<\/p>\n

Fat finger trades are human errors \u2013 more often than not pressing the wrong buttons SGX later on Thursday said fat fingers or a technical glitch were not to blame and that the trades were orderly<\/a>\u00a0(albeit baffling).<\/p>\n

In June 2017, the Comex gold market in New York also fell victim to a fat finger that saw a trade executed at some 100 times usual size resulting in a 1.6% drop in the price (the metal also recovered later in the day).<\/p>\n

This was MINING.com’s report at the time:<\/p>\n

The gold market absorbed a massive $2.2B in gold sales in less than a minute and during a period of illiquidity<\/q><\/p>\n

\"Muppet<\/p>\n

Source: CME Group<\/p>\n<\/div>\n

\n

Ross Norman, CEO of gold trader Sharps Pixley, ascribes the sharp decline<\/a> to a 60 second 56 tonne (1.8m ounces) trade executed at 9am in London:<\/p>\n

“This bears the hallmarks of a fat finger ‘muppet’ – a trade of 18,149\u00a0ounces <\/em>would be a very typical trade, but a trade of 18,149 lots<\/em> of a futures contract (which is 100 times bigger) would not be… it leaves us wondering if a junior had got confused between “ounces” and “lots”… or maybe an incorrectly programmed algo ahead of options expiry on COMEX … we just don’t know.”<\/p>\n

Norman points out that if the trade, which may also have been carried out by a central bank or a large-scale speculator opening a short position, was indeed an error, the gold price bear who made the move is nursing a $36 million loss at this point:<\/p>\n

“The big take-away though from all this is that the gold market absorbed a massive $2.2 billion in gold sales in less than a minute and during a period of illiquidity … and it ONLY moved the needle 1% lower.”<\/p>\n<\/blockquote>\n

On Thursday gold was trading at $1,279 an ounce in New York, down $4.30 on an uneventful day with 218,101 lots<\/i> traded by mid-afternoon.<\/p>\n

\n

\"\"<\/a>FLASHBACK: Year to the day of $200 shocker, another strange gold price plunge<\/a><\/h4>\n

The post FLASHBACK: Gold price fat finger \u2013 56 tonnes gone in 60 seconds<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A centuries-old Asian conglomerate lost $41 billion in market value in seconds Thursday – here’s a look back at the gold market’s famous 2017 muppet trade. <\/p>\n

The post FLASHBACK: Gold price fat finger – 56 tonnes gone in 60 seconds<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[404,369],"tags":[48],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1096149"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1096149"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1096149\/revisions"}],"predecessor-version":[{"id":1096150,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1096149\/revisions\/1096150"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1096149"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1096149"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1096149"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}