LBMA Trader: "This Is Just Smart Money Pushing Gold To The Extremes"

This morning gold collapsed from $1670 oz. to $1642.80. In response, I called a contact of mine who runs a "market-making" precious metals desk in London.

Commenting on today's collapse he said, "I'm not that worried about the sell-off today, it's just the logical thing. I was surprised they waited so long [to take it down], because many opportunities to push it to that level existed before...and it finally happened, and that's good for the market. This is actually a blessing. We are still not at the lows of January at $1625...but at the moment this is probably as far as it's going to go [$1642]. There's good support here."

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