ML-Implode News - Gold on sale as "one big seller" reportedly takes down price amid shutdown

Gold shed about $40 just after the opening of the New York trading session, and one look at the chart confirms the market rumors: A single big seller is to blame. "It's obvious it has to be a fund that is just now forced into liquidation" at the start of the third quarter, one floor trader told Reuters. "We heard there was one big seller," confirmed an HSBC analyst. Added a Stifel Nicolaus strategist: "Around 8:40 (a.m.) when the bottom really came out of the metal, a billion dollars worth traded in the futures pit over a 10-minute period. I think a fair amount of it was stop losses when it took out the September low, and once it hit $1,300, it took out more."
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If the shutdown is not resolved before Oct. 17, "the U.S. is likely to be downgraded in credit markets, its economy will falter, and confidence in the U.S. as leader of the global economy will stumble," GoldForecaster.com founder Julian Phillips warned. In that case, "we see the potential for an impact on the global system equal to the mid-2007 credit crunch. This will be more than a 'game of chicken' as it has been building up for years now."

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Gold on sale as "one big seller" reportedly takes down price amid shutdown