The Strange Intraday Behaviour of Gold

Abstract

‘Good morning, America’ or ‘One could set one’s watch by it’ – so market observers joked around the turn of the millennium whenever they watched the gold price and once again saw that it fell shortly after the open of the COMEX in New York. This happened with such unwavering regularity that many suspected it was no coincidence. Rather, they surmised that systematic interventions against gold were behind this anomaly, which typically took place at a specific time of the day, namely during the trading hours of the most important futures market. Rumours about such interventions had been making the rounds for a long time already, at least since 1995.6 Since 1999 the Gold Anti-Trust Committee (GATA, www.gata.org), a US civil rights organisation, helped to point these interventions out. It had made it its goal to publicise them and, if possible, contribute to putting an end to them. In Figure 4.1 you can see the intraday movement of the gold price over three consecutive trading days for clarification.KeywordsStock MarketPrice MovementClosing PriceTrading PeriodPrice DeclineThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.