An accidental ‘fat-finger’ trade may have triggered a dramatic 1.3% fall in the gold price in early UK trading on Monday (June 26), which saw it plummet from $1,253 to $1,243 in just five minutes.
It partially recovered before falling still further to $1,237 when the US markets opened, but rebounded to the $1,245 range, where it stayed for the rest of the day.
The price rose sharply to $1,252 on Tuesday morning prior to the opening of the London market.
City rumour mills suggest a fat-finger trade – an accidental keyboard input of an order for an incorrect amount – may have been responsible.
Gold miners followed the yellow metal’s downward plunge, with the world’s biggest gold miner, Barrick Gold, seeing a drop of 2.3% in just over four hours, before recovering rapidly.
The second biggest producer, Newmont Mining, suffered a 1% fall at the start of trading on Monday before bouncing back.
Silver mirrored the fall in the gold price, dropping from $16.69 to $16.50 in just a few minutes on Monday morning.