NEW YORK ( TheStreet) -- As I mentioned in The Wrap in yesterday's column, gold and silver didn't do much in Far East trading on their Thursday, but moments after the London open, the price spiked up about ten bucks or so, and that rally got met with mega-selling by a not-for-profit seller. Gold volume doubled in two hours.
From that point, gold traded more or less flat into the Comex open, and the rest as they say, is history, with the big sell off coming at, or shortly after, the London p.m. gold fix was in at 10 a.m. EDT. The New York low was recorded by Kitco as $1,318.60 spot, and that came shortly after 12 o'clock noon EDT. The price recovered a few dollars into the close.
Gold finished the Thursday session at $1,323.80 spot, down $9.30 from Wednesday. Net volume was close to 167,000 contracts, with about 35,000 of that coming before the London a.m. gold fix.Here's the New York Spot Gold [Bid] chart on its own. Silver sold off a bit as the trading day wore on in Hong Kong yesterday, and the rally over the $22 price mark got squashed the moment that the noon silver fix was in, in London. From there, the price got sold down to $21.75 spot by 10:25 a.m. EDT, and then didn't do much for the remainder of the day. The low tick came on a spike down that occurred right at 3:30 p.m. EDT in electronic trading. Silver closed at $21.725 spot, which was down 7 cents from Wednesday. Net volume was 39,000 contracts, with 25% of that amount traded before 10:30 a.m. BST in London. Here's the New York Spot Silver [Bid] chart on its own, so you can see the details. Both platinum and palladium started off in positive territory, but both ran into selling pressure around noon in London, just as silver did. And as the charts show, platinum got sold down a lot harder than palladium. The dollar index closed at 80.345 late on Wednesday afternoon in New York. From there it didn't do a lot until just after 8:30 a.m. in London on their Thursday morning, about thirty minutes after the gold and silver rallies were underway, then it chopped steadily higher, reaching its zenith of 80.63 just minutes after 12 o'clock noon in New York, which was around gold's low of the day. From there it sold off a bit into the close. The index finished the Thursday session at 80.53, which was up a bit under 20 basis points, but still trading in that same tight range that it's been doing for over a week now. The gold stock opened in the green, and held in there until the big sell-off after the London p.m. gold fix. Then it was all down hill from that point, but they popped a bit in the last forty-five minutes of trading, trimming their loses on the day. The HUI finished down 1.42%. The silver stocks got smacked as well, and Nick Laird's Intraday Silver Sentiment Index closed down 2.22%. The CME's Daily Delivery Report showed that 42 gold and 6 silver contracts were posted for delivery within the Comex-approved depositories on Monday. In gold, all 42 contracts were issued by JPMorgan out of its client account, and all were stopped by either HSBC USA, Canada's Scotiabank, or JPMorgan out of its in-house [proprietary] trading account. The link to yesterday's Issuers and Stoppers Report is here. There were no reported in/out movements in either GLD or SLV yesterday, and there was no sales report from the U.S. Mint for the second day running. While on the subject of the SLV, Joshua Gibbons, the "Guru of the SLV Bar List", updated his website with SLV's latest inventory changes for the reporting wee just past; and this, in part, is what he had to say: "Analysis of the 25 September 2013 bar list, and comparison to the previous week's list: 4,152,038.5 troy ounces were added (all to Brinks London), and no bars were removed or had a serial number change." "The bars added were from: Aurubis AG (1.4M oz.), Krasnoyarsk (0.7M oz.), Solar Applied Materials (0.5M oz.), and 21 others." The link to Joshua's website is here. There was no gold moved either in or out of the Comex-approved depositories on Wednesday. It was a different story in silver, as Canada's Scotiabank reported taking in 1,337,607 troy ounces, and shipped out 601,011 troy ounces for parts unknown. The link to that action is here. I have a reasonable number of stories today, and I hope you find some of them of interest.