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Gold Trading Leak Alleged After Fed's "No Taper" Shock

Federal Reserve "leak" seen behind 7 milliseconds of profitable gold trading...
GOLD TRADING volumes and prices leapt too quickly to soon for the US Fed's "no taper" decision on quantitative easing last Wednesday to have kept secret, according to a detailed analysis now being investigated by the central bank.
Journalists from a handful of news organizations are given the US Federal Reserve's statement minutes before the official release on the day of its policy vote. But the newswires must "make no public use or other dissemination" until the 2pm embargo, reports the Financial Times.
Studying the action in gold trading as well as other contracts on the Chicago futures market, financial analysts Nanex say the "no QE tapering" decision must have been leaked, albeit a fraction of a second before the official deadline.
Because "the speed of light fastest transmission you can have from [Washington DC] to Chicago where [these] trades executed is 7 milliseconds," says CNBC. Yet gold prices, as well as other assets, leapt during that window, starting precisely at 14:00:00.
"As is generally the case with other releases of market-sensitive information by government agencies," said a Fed spokesman commenting on the gold trading and other activity, "news organisations receiving embargoed information from the Federal Reserve agree in writing to make no public use of the information until the time set for its release.
"We will be conducting follow-up conversations with news organisations to ensure our procedures are completely understood."
Modern trading exchanges enable computerized orders, made via software employed by hedge funds and other market players, to be easily placed, cancelled and replaced inside the 7 millisecond window now at issue.
Other commentators, however, ask whether a "leak" was needed for some trading houses to try and second-guess the volatility which the Fed's announcement was likely to create, whether it chose to taper its $85 billion in monthly QE money creation or not.
"The [ gold trading] market is confused about the Fed," said one refinery executive to Reuters today. "A lot of people are [also] looking at the debt ceiling talks."

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