By Barani Krishnan
Investing.com – It’s almost one of the claims some traders make about manipulating the gold market, but today and every now and then sellers claim that someone is manipulating the market.
The market closed its best session in two and a half years on Wednesday, with strong buying pressure from hedge funds that usually hit gold on every occasion, but surprisingly what happened today fared better than expected. , usually benefiting the dollar at the expense of gold.
The US dropped to 111 on Friday, despite the US economy adding 261,000 jobs in October, 35% more than expected at 195,000. A day ago, the dollar index reached its session high at 113.035.
Gold contracts finished the session up 2.8%, with added gains of $ 45.70 per ounce to $ 1,676.60 per ounce. Investing.com data showed the largest one-day rise in gold since April 2, 2020.
On a weekly basis, the price rose to $ 1,673.88 an ounce and on Thursday gold hit a 5-week low at $ 1,616.69 an ounce.
Gold’s turnaround on Friday came so unexpectedly that chart watchers and technical analysts called it manipulation.
“The job numbers don’t justify what happened to the dollar and gold today,” said SK Charting’s Sunil Diskett. Dixit expected the index to hit 114 and gold to remain at its lowest in 5 weeks.
“The whales and hedge funds are playing, manipulating the dollar and gold at the same time, but this time in favor of gold and at the expense of the dollar,” Diskett said.
Gold market commentator Mark Hilbert says he doesn’t believe the recovery will last. According to him, the yellow metal will collapse before it starts to improve.
“Gold lovers have suffered a lot and will suffer for a long time,” Hilbert wrote on his Market Watch blog. “This is because the gold traders have not given up on gold. And when this manipulation takes place – as it has today – the traders see that what gold has achieved was a low and starts to rise. And every time that is. year the gold traders have fallen back from the abyss ”.
“And it looks like today is another day for that.”
