Just like 30 April 2012, it seems like it is another Fat Finger Gold trade, however USD gains momentum overall. Meanwhile, technical analysis based XAUUSD price forecast indicate a potential reversal.
26 June, AtoZForex - After a very slow price movement throughout major markets, the new week has suddenly brought signs of life with it. However, the volatility comes with its questions:
- What is happening in commodity market?
- Is it another fat finger Gold trade?
- What is the XAUUSD price forecast?
Just to remind you, on the 30th of April 2012 the gold market was shaken with an unexpected $14/ounce drop thanks to the massive $1.24 Billion 'Gold Finger' Trade. That was the prime time of gold traders, where XAUUSD price was soaring well above $1600 levels.
Is it another Fat Finger Gold trade?
Meanwhile, what is the reason for today's Gold collapse? Is it also another Fat Finger Gold trade? Especially, for the fact that there was no obvious macroeconomic update. Why did gold drop 1% to $1,243 /ounce, while the US dollar gained momentum, especially the Japanese Yen lost ground against its counterparts. Based on the overall price development in Forex as well as COMEX market, I beleive today's Gold price movement was not due to a fat finger trade, but likely due to flow of orders.
On the other hand, today's Gold move created suspicion in the market. Some traders suggest that there may be High Frequency Trading (HFT) programmes that can see where stop loss orders are placed and sell in order to force stop loss selling – then buying back and thus making a quick profit.
To avoid market manipulation investigation, such traders may try to move market in various instruments as well, which would make it appear as algorithmic trading. Thus avoiding potential market manipulation investigation.
26 June XAUUSD price forecast
According to the technical analysis based XAUUSD price forecast, we can expect a potential reversal or a minimum of correction wave from Gold at $1232/ounce.
The corrective XAUUSD price forecast is in line with the H&S harmonics as well as Yagub Rahimov's true fibonacci wave theory. Thus, it would be ideal to look into potential bullish Gold orders on or close to $1232 level with some $5 - $8 risk. Meanwhile, the target for this bullish XAUUSD price forecast is right on $1245 initially.