Any fundamental/non-technical explanations for this please? EliteTrader's Search does not go back this far, and Google does not have much info on this.
Found this posting in another board: Hi Bill, My name is J. C. and I have been a member of the cafe for what is now going on my third year and I am also a Comex member and have been so for 20 years. I would like to share my observation of Friday's move with you. Since Thursday Chase was trying to defend the 275 number. Every time we approached it they sold 200 August contracts every dime up. The June/August switch was offered at a buck so Chase started selling August at 27520-27580 and Goldman was a seller in June from 27450 to the high of 27490. Whenever another trader bid 90 Goldmans broker screamed SOLD--COME ON which I am sure you know means that Goldman had the world to sell. I turned to another trader and said Chase and Goldman will not let this market trade above 275 and it did not settling at 274.30. Now on to Friday......The market opened a dollar lower and quickly traded down to 27260, on small volume, the Euro was on it's lows and the dollar was on it's high's (as you know that is not a good sign for gold) and it looked like it was going to be a down day. Then Moore capital started to do some buying in June and Refco was a buyer in August and the market was drifting higher, and because of the Euro and the $ most locals in the ring were short. Goldman and Chase again tried to defend the 275 number but on this day it would not work. Massive buy stops were hit above 276 and we were off to the races. One of your articles this morning stated that it was fund buying and CNBC is telling the world that gold and oil were up on Friday due to unrest in the middle east. I want you rest assured that the buying from 276 to 288.50 was majority trade buying. I have been on the exchange a long time and I have heard and seen it all but this my friend was TRADE BUYING. Thanks for listening to me and thanks for all you and your staff are trying to do for the gold world. Sincerely, J. C.
If you really feel motivated and curious, go to a public library and read the Wall Street Journal and Investor's Daily comment in the May 22nd, 2001 edition on microfiche.