By Barani Krishnan
Investing.com – It’s almost one of the claims some traders make about gold market manipulation, but today and once in a while, sellers claim that someone is manipulating the market.
The market ended its best session in two and a half years on Wednesday, with heavy buying pressure from hedge funds that usually hit gold at any opportunity they get, but surprisingly what happened today came in better than expected, usually benefiting the dollar at the expense of gold.
The US fell to 111 on Friday, despite the US economy adding 261K jobs in October, 35% more than expected at 195K. A day ago, the dollar index reached its session high at 113.035.
Gold contracts ended the session 2.8% higher, with gains added at $45.70 an ounce at $1,676.60 an ounce. Investing.com data showed gold’s largest one-day increase from April 2, 2020.
On a weekly basis, the price rose to record $1,673.88 an ounce, and on Thursday gold reached its lowest level in 5 weeks at $1,616.69 an ounce.
Gold’s turn around on Friday came so unexpectedly that chart watchers and technical analysts referred to it as manipulation.
“The jobs numbers do not justify what happened to the dollar and gold today,” said Sunil Diskett of SK Charting. Dixit expected the index to reach 114, and gold to remain at the lowest levels in 5 weeks.
“Whales and hedge funds are playing a game, manipulating the dollar and gold at the same time, but this time in favor of gold and at the expense of the dollar,” said Diskett.
Gold market commentator Mark Hilbert says he does not believe the recovery will last. In his opinion, the yellow metal will collapse before it begins to improve.
“Gold lovers have suffered a lot, and will suffer much longer,” wrote Hilbert on his blog on Market Watch. “This is because gold traders haven’t given up on gold some. And when this manipulation happens – like what happened today – traders see that what gold has reached was a bottom and starts to rise. And every time this year gold traders have fallen back from the brink.”
“And it looks like today is another day for this.”