Wednesday, September 18: Today in Gold and Silver
NEW YORK ( TheStreet) -- Gold did little of anything in Far East trading on their Tuesday, but volume was decent nonetheless. The price rallied a bit at the London open, but it didn't get too far. The high of the day appeared to come during the London lunch hour, and from there it got sold down until just past the London p.m. gold fix. From that point it chopped sideways into the 5:15 p.m. electronic close in New York. The low of the day [$1,305.30 spot] came at 12:15 p.m. EDT.
Gold finished the Tuesday session at $1,310.00 spot, down $3.90 from Monday's close. Net volume was around 142,000 contracts.
It was more or less the same trading pattern in silver as well once again. The only real difference was that the low price tick of the day [$21.55 spot] came about fifteen minutes after the Comex open in New York yesterday morning. It recovered a bit, but continued to slide into the close after that. Silver finished the day at $21.735 spot, down 8.5 cents from Monday. Net volume was only 35,000 contracts. The price action in platinum and palladium was somewhat more subdued. Platinum closed down a bit and palladium finished flat. Here are the charts. The dollar index closed late on Monday EDT at 81.28. It's high tick of 81.35 came just minutes before 11 a.m. in Hong Kong trading. By half-past lunchtime in London, the index was down to 81.15. And except for a brief down/up spike in morning trading in New York, the index traded pretty flat for the remainder of the day. The index closed at the 81.15 mark, which was down thirteen basis points from Monday's close. The gold stocks opened in positive territory, and except for a quick spike down at the gold's New York low, which came at 10:15 a.m. EDT, the equities chopped higher for the remainder of the day. The HUI finished right on its high tick, up 1.80%. If you're looking for a reason why the shares closed up yesterday, I don't have one. The silver stocks spent equal time trading either side of unchanged on Tuesday. But when all was said and done, Nick Laird's Intraday Silver Sentiment Index closed up at tiny 0.14%. It's better than the alternative, I suppose. The CME's Daily Delivery Report showed that zero gold and 57 silver contracts were posted for delivery on Thursday within the Comex-approved depositories. For the second day in a row it was Jefferies as the largest short/issuer, this time with 50 contracts. Canada's Bank of Nova Scotia and JPMorgan Chase in their client account picked up 35 and fourteen contracts respectively as the biggest long/stoppers. The link to yesterday's Issuers and Stoppers Report is here. There were no reported changes in GLD, and as of 9:28 p.m. EDT yesterday evening, there were no reported changes in SLV, either. The U.S. Mint had a small sales report yesterday. They sold another 2,000 ounces of gold eagles, along with another 500 1-ounce 24K gold buffaloes. The activity in gold within the Comex-approved depositories on Monday is hardly worth mentioning. There were 2 kilo bars deposited at Brink's, Inc. and that was all. Needless to say, it was a different story in silver. There were 857,048 troy ounces reported deposited, and 263,785 troy ounces were shipped out. The link to that action is here. I have a decent number of stories for you today, but hardly anything in the precious metal department.
¤ The WrapThat [last] week’s COT gold and silver readings were encouraging has little to do with short term price action directly ahead. If there is more technical fund selling to be created by lower prices, then rest assured that JPMorgan will be looking to set off that selling by rigging prices lower. Only when the technical fund selling is exhausted will JPMorgan stop rigging prices lower. Unfortunately, there is no way of pinpointing that time without the benefit of hindsight, but we are so deep into this current rigging that it feels we are past, or close, to the point of a cessation to JPMorgan’s rig to the downside. I hope I’m not beating this process to death, but (aside from subscribers) so many observers don’t seem to get what drives gold and silver prices. - Silver analyst Ted Butler: 14 September 2013 I wouldn't read a lot into Tuesday's price action in any of the precious metals. Volumes were very light, and anyone with an agenda could move prices in either direction. And as Ted pointed out in his quote above, the down-side process has probably pretty much run its course. Everyone is in a wait-and-see mode for Bernanke & Co. later this afternoon in New York. Then I expect we'll see some price action. The only thing I don't know for sure is which direction it will take, or how fast it will move when it does. The high-frequency traders did the dirty in all four precious metals early in Far East trading this a.m., with the lows coming at 10 a.m. in Hong Kong on their Wednesday morning. Then, starting just before 2 p.m. local time, rallies began that have extended about an hour into the London trading session. Gold volume is already north of 50,000 contracts, and silver's volume is approaching 14,000 contracts. The dollar index is doing precisely nothing. And as I hit the send button on today's column at 5:10 a.m. EDT, I note that the tiny rallies I spoke of in the preceding paragraph have amounted to nothing, and all four precious metals are trading slightly below their Tuesday afternoon closes in New York. Volumes have really backed off. Gold volume is at 57,000 contracts, and silver's volume is just under 15,000 contracts, and the dollar index is still trading sideways. Like you, I await the word from the Fed, and we'll take it from there. See you here tomorrow.
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