Can anyone tell me why in Australia we are seeing period trading suspensions on gold and silver. The latest suspension on both metals 2015 07.03 19:59 ET. I am seeing this on Axitrader and GlobalPrime Mt4 platforms. This is not the first time it has happened.?[/QUO
Hello,
From my knowledge there has been no suspension in gold and silver trading during past few years on exchange. However there are few brokers, who are engaging in market making i.e. they are taking contra position against client trades or more precisely these brokers are not directing trades to the liquid providers or exchanges but are keeping on their books.
There is a wider consensus that bullion prices will fall in an anticipation of US interest rate hike, these brokers are seeing massive short position build up in gold & silver. As we know these brokers are keeping trades with themselves or we can say that they are taking position against the client trades, by default it means that these brokers are long in gold & silver. And if there is fall in gold & silver prices, the clients will make money. However, brokers will lose equivalent amount of money. In order to avoid this situation they are suspending the trading in bullions whenever they are seeing large increase in position in one side i.e either on short side on long side.
