NEW YORK ( TheStreet) -- The gold price rose about five bucks in early Far East trading, before trading flat until just before 2 p.m. Hong Kong time. At that point, the HFT selling began, with the low of the day [$1,305.30 spot] coming on a spike down that ended at 9 a.m. in New York right on the button. But by 11 a.m. EDT, the gold price had gained back most of its New York losses, and then traded more or less sideways into the 1:30 p.m. Comex close.
At that point, the price spiked up about fourteen bucks in about half an hour, before getting sold down to almost where it closed on Monday.
Gold finished the Tuesday session at $1,323.00 spot, down 70 cents. Net volume was pretty decent at 161,000 contracts, with a quarter of that coming by 10 a.m. BST in London.Here's the New York Spot Gold [Bid] chart so you can see the action there in more detail. After trading sideways for the first hour, silver headed higher in a hurry, and the price was not only north of $22 the troy ounce shortly after 9 a.m. in Hong Kong trading, but was in danger of going parabolic. But, not to worry, as a seller of last resort appeared in the nick of time, and within an hour the price was back down below the $22 spot mark. Then, just like in gold, the HFT crowd showed up shortly before 2 p.m. in Hong Kong trading, and that was pretty much it until the noon silver fix in London, which also appeared to be the low price tick of the day. Silver rallied a bit after that, but also got taken down shortly after the Comex open, and its New York low [$21.35 spot] also came at 9 a.m. EDT right on the button. After that it followed the gold price pattern, complete with the price run-up that began the moment that Comex trading ended, along with the sell-off into the 5:15 p.m. EDT electronic close. Silver finished the trading day on Tuesday at $21.72 spot, up a whole 8 cents from Monday. Here's the New York Spot Silver [Bid] chart on its own. As you can see at a glance, the price pattern was very similar to gold's. Both platinum and palladium also ran into the same Hong Kong seller as gold and silver, but after that, their price diverged not only from each other, but also from what gold and silver were doing as well. Platinum's low tick came shortly before 1 p.m. in New York. Here are the charts. The dollar index closed in New York late Monday afternoon at 80.45. It spent all of Tuesday slowly chopping higher, and finished the day at 80.59, which was up 14 basis points from Monday's close. The gold stocks were down two percent within 15 minutes of the open, but rallied back to just above unchanged by 10 a.m. EDT. After that they chopped sideways in a sawtooth manner, before closing unchanged on the day, like in 0.00%. The silver stocks opened down and stayed down for the rest of the Tuesday session, but their chart pattern was identical to the chart pattern for the gold stocks. Nick Laird's Intraday Silver Sentiment Index finished lower by 1.82%. The CME's Daily Delivery Report showed that 10 gold and 10 silver contracts were posted for delivery within the Comex-approved depositories on Thursday. There were only 20 contracts in total, but JPMorgan Chase and Canada's Bank of Nova Scotia were the long/stoppers on every single contract. The link to yesterday's Issuers and Stoppers Report is here. There were no reported changes in GLD yesterday. Both Ted Butler and I were sort of expecting a withdrawal from SLV, but one didn't materialize. Instead, an authorized participant deposited 867,470 troy ounces. Without doubt, that was done to cover an existing short position. Based on the price action in silver since September 13, there should have been some decent withdrawals. But as of yesterday's close in SLV, 4.24 million ounces has been deposited instead. I would guess that the entity depositing silver has also been buying up most, if not all of the SLV shares that have been sold in the last ten trading days. I would suspect that entity to be JPMorgan Chase. Unfortunately, none of this activity will be in the next short report [which will be out later this week] from the good folks over at shortsqueeze.com, as the cut-off date for their upcoming report was probably the 13th as well. About two hours after I wrote the above paragraph, I happened to check the shortsqueeze.com website, and lo and behold, it had been updated. It showed that for the first half of September, the short position in SLV had only declined by 1.34%, from 15,880,700 shares/troy ounces, down to 15,668,000 shares/troy ounces. That's a hair over 487 metric tonnes of silver. It's obvious that the 4.24 million ounces of silver deposited since the cut-off will reduce the remaining short position by a huge amount. As of this new report, the short position in SLV shares represents only 4.4% of the total number outstanding. The short position in GLD declined by 17.90%, from 30,766,200 shares, down to 25,260,200 shares; or 2.526 million ounces, a bit more than 80 metric tonnes. The short position in GLD is now down to around 8 percent of the total shares outstanding, which is an outrageous amount considering the fact that the shorted shares have no gold [or silver] backing them. I expect that Ted Butler will have more to say about this in his mid-week commentary to his paying subscribers this afternoon, and I'll report on any comments he might have. Over at Switzerland's Zürcher Kantonalbank bank for the week ending Friday, September 20, they reported small deposits in both their gold and silver ETFs. Their gold ETF rose by 14,721 troy ounces, and their silver ETF had 40,478 ounces deposited. The U.S. Mint had a tiny sales report yesterday. They sold 1,000 troy ounces of gold eagles, and that was it. It was a semi-eventful day in gold over at the Comex-approved depositories on Friday. They didn't report receiving anything, but HSBC USA shipped a fairly chunky 173,358 troy ounces out the door. The link to that activity is here. In silver, Canada's Bank of Nova Scotia reported receiving 959,943 troy ounces, and nothing was shipped out. The link to that action is here. The table of numbers below is something that I asked Nick Laird to whip up for us. What it shows is the closing price of all five Comex-traded metals on the day that gold hit its high price tick on January 21, 1980. The second column of numbers shows the closing price of these same commodities as of the close of trading on Monday. The third column shows the gains or losses in each metal since 33 years ago. Based on the U.S. governments own inflation figures, John Williams over at shadowstats.com said several years back that silver should be somewhere north of $160 the ounce, and gold should be around $2,700/ounce. John's projected prices for both gold and silver based on the true U.S. inflation rate would make your eyes glaze over, as they are several multiples of these numbers. It's obvious from these numbers that the Fed, and others, have had great success in keeping commodity prices under control as they print the U.S. dollar into oblivion. I don't have that many stories, but there are a number of longish interviews that will take a chunk of your time, so I hope you have some to spare.