Gold futures Tuesday morning, demonstrating that the fast-moving computerized marketplace is not isolated to the traditional equity securities world.
Gold futures, the indicative price at which gold can be brought for at a certain time in the future, dropped $5 in one second on the 2nd of July as fast-moving computerized trading hit the traditional safe haven.
Nanex, a provider of real-time data to traders, noted that 700 trades in 1,000 gold future contracts of gold for August delivery drove the price down from $1250 to $1245 in one second at 10:11:15.
Previously, at 3:01:50 the same morning, the same contract jumped $6 in a second when a similar 1,000 contracts were traded.
With computerized high-frequency-trading like this happening in the market for precious metals, how can they be considered a safe haven when they are subject to the same volatility as equity markets?