5 August 1993, 8.27 a.m. EST: The Beginning of Systematic Gold Market Interventions

Dimitri Speck

Chapter Chapter 19 in The Gold Cartel, 2013, pp 93-98 from Palgrave Macmillan

Abstract: Abstract On 5 August 1993, at 8.27 a.m. EST, something very special happened, something that the market didn’t get to see very often, but which would subsequently happen over and over again, albeit in somewhat milder form. Gold fell like a stone, out of the blue, in an abrupt and, for investors, very painful move. Within seven minutes the gold price lost $13. Such a sudden and fast decline had last happened six years earlier, on the 27 April 1987, as already discussed (when there were also many hints that an intervention was taking place). Back then, a preceding rally of 14 per cent over a month was reversed. This time, the immediately preceding monthly rise was only 4 per cent. After such a moderate rally it appears unlikely that the sharp decline was merely a technical reaction.

Keywords: Central Bank; Market Participant; Sharp Decline; Wall Street Journal; Future Contract (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-28643-7_19

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DOI: 10.1057/9781137286437_19

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