Some relevant news from a trading perspective
1-Gold Trader: “How Easy It Is” To Manipulate Metals Markets
“They did it over and over and over again. They took pride in their skill to manipulate prices. They took pride in ripping off other traders. They bragged about it.”
That is how Scott Armstrong, a trial attorney in the U.S. Department of Justice’s fraud division, described two former traders at Bank of America’s Merrill Lynch unit charged with manipulating precious-metals markets with fraudulent trades.
According to the government, the pair used spoofing orders in gold and silver markets for several years, mostly in 2010 and 2011. As Bloomberg’s Bre Bradham reports, chat logs introduced as evidence against Edward Bases and John Pacilio showed the two traders bragging about how easy it is to manipulate prices.
“…that does show u how easy it is to manipulate it sometimes,” Bases wrote minutes after one such manipulation.
They are not alone in this act. In the last few years, as the government has cracked down on market manipulation, we have seen many banks get pinged for manipulating metals markets…- Source: Zerohedge
Takeaway 1: The market is manipulated! Told you!
Takeaway 2: Not any more, they have cracked down on it. Better late than never. Justice prevails
Net-Net: The horse has left the barn, the barn is burned down, and the horse moved to Bitcoin and Asian metals markets. They only get caught after the well has run dry and are expendable to satisfy the regulatory bureaucrats. Comex is on the wane and China is on the rise. No manipulation means no trading in US metals. Fact.. Also- people don’t manipulate now, algos do. Depose programmers to catch thieves.