"Gold futures expire today, June 28th. If you follow the manipulation theories, it is just prior to expiration time, either in futures or options, that paper shorts increase their net short positions in order to manipulate precious metals (and stocks) downward. This allows the manipulators to profit as the contracts they sold to unwitting investors expire worthless. The sudden drop in price also provides an opportunity for the shorts to cover their positions, profiting via paying back their creditors with lower priced gold or equities.
Investment banks and savvy traders riding their coattails have used this pattern to profit at the expense of honest traders that aren’t in the loop, as was detailed in the precious metals market by whistle-blower Andrew Maguire in March of this year. And despite the manipulation being meticulously explained to the Commodities Futures Trading Commission (CFTC) and released to the press by the Gold Anti-Trust Action Committee (GATA), nothing has been done to stop the manipulation or address the massive concentration of paper short positions by a few of the largest investment banks. But schemes of this nature tend to eventually fall apart one way or another, even if market regulators are bought off and completely lacking in the moral integrity necessary to do the right thing. Market forces have a way of re-asserting themselves, particularly when the scam is brought into the light..."
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