atlunch - they could rebalance reserves more frequently and thereby minimise market impact of the gold sales. They don't do this so one must say the outcome of dropping the price quickly is a desired effect. They have to know they are taking out sell stops, etc.
Why would anyone want the price of a commodity they hold to decrease in price? And why would they sell it in such a fashion that minimises their sale proceeds, i.e. dumping a large quantity in a short space of time?
The outcome of dropping the price is desired. It is illogical to conclude otherwise.
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