This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Friday, October 4: Today in Gold and Silver

NEW YORK ( TheStreet) -- It was a nothing day for gold in Far East trading on their Thursday.  Once London opened, the gold price got sold down a bit over 10 bucks going into the Comex open, with the subsequent rally moving the price back to up five or six bucks by noon EDT.  From there the price chopped quietly lower into the 5:15 p.m. electronic close.

The highs and lows aren't worth mentioning.

Gold finished the Thursday session in New York at $1,316.70 spot, up a whole 40 cents from Wednesday's close.  Net volume was pretty quiet at around 133,000 contracts.

Silver's price pattern was pretty much the same.  The high tick in New York [$21.96 spot] came minutes before the Comex close, but that rally got sold down the moment it appeared that the price would break through the $22 spot mark.  After that, the silver price also traded quietly lower for the rest of the day.

Silver closed at $21.695 spot, which was down 3.5 cents from Wednesday.  Net volume was an unspectacular 32,000 contracts.

The other two white precious metals did not fare as well.  Platinum closed down about a percent, and palladium got clubbed for 2%.  Here are the charts.

The dollar index closed late on Wednesday afternoon at 79.92, and then spent the next 24 hours slowly chopping lower.  The low tick [79.64] came minutes before noon in New York, about the same time as the Comex "rallies" in gold and silver ended in New York.  The index closed at 79.73, which was down 19 basis points on the day.

The gold stocks hit their high at the London p.m. gold fix, which is 10 a.m. in New York.  And despite the fact that the metal itself plowed slowly higher, there was a willing seller present for the next three hours that sold the gold equities into negative territory.  From there they traded sideways in the close.  The HUI finished the Thursday session on its absolute low tick, down 1.16% on the day.

It was precisely the same chart pattern in the silver equities, except they got sold down even more.  Nick Laird's Intraday Silver Sentiment Index closed down 2.04%.

Day four of the October delivery month was much quieter, as the CME Daily Delivery Report showed that only 25 gold and 10 silver contracts were posted for delivery within the Comex-approved depositories on Monday.  The link to yesterday's Issuers and Stoppers Report is here.

An authorized participant withdrew 57,923 troy ounces of gold from GLD yesterday, and as of 10:14 p.m. EDT yesterday evening, there were no reported changes in SLV.

Joshua Gibbons, the "Guru of the SLV Bar List" updated his Web site with the latest weekly activity in SLV.  Here is what he had to say yesterday: " Analysis of the 02 October 2013 bar list, and comparison to the previous week's list; No bars were added, removed, or had a serial number change. As of the time that the bar list was produced, it was over-allocated 42.0 troy ounces. There was a withdrawal of 145,142.7 troy ounces on Wednesday that has not yet been reflected on the bar list, and that should appear on the next bar list (as it normally takes a day or two for the bar list to get updated)."  The link to his website is here.

For the first time this week, there was no sales report from the U.S. Mint.

There was no in/out activity in gold at the Comex-approved depositories on Wednesday.  But it was a totally different story in silver, as 1,195,057 troy ounces were received, but only 55,303 troy ounces were shipped out.  The Big 3 bullion banks/Comex silver shorts were hardly involved in the yesterday's silver action.  The link to yesterday's silver activity is here.

Here are a couple of charts that Nick Laird sent me the other day that I just didn't have room for until now.  They are the intraday price charts for both gold and silver for the month of September.  As you can see, the high in gold was at noon in Far East trading, with the low coming at 12:30 p.m. in New York.  The subsequent rally took gold back up until exactly 8 a.m. in Hong Kong, and then the price pattern repeats.  It's the precision of the timing that shows that these aren't free-market events.  It may not be noticed on a day-to-day basis, but when you average it out over a month of trading days, the rig job shows up for all to see.

In silver, the high of the day comes, on average, at 8:30 a.m. BST in London, and after that the chart pattern is the same as gold's, including the times that the silver price rallies and gets sold off.

Also take careful note of the price spikes at the fixes in both gold and silver.  The obvious take-away from all this, for all but the willfully blind, is that the "fix" is in 24 hours a day.

I don't have that many stories again, which always suits me fine, so I hope you can find the time to go through the ones that interest you.

¤ The Wrap

When you contemplate the absurdity of an insider-run electronic exchange in New York determining the revenue of an exporting country through computer games and uneconomic market corners… and not real supply/demand factors… it becomes apparent that this is a set up that could fall apart quickly, as and when the exporting countries become cognoscente of it. What JPMorgan and the CME are doing to the silver exporting countries of Latin America is not much different to me than what the Conquistadors did centuries ago. There’s just a different method to stealing the silver. Throw in a silver exporter like Russia that likes to go toe-to-toe with the U.S. on many issues, and it’s easy to imagine a legal challenge that with punitive damages could climb to many billions of dollars cumulatively. - Silver analyst Ted Butler, 02 October 2013

There wasn't any price action worth commenting on yesterday, and even the volumes were light.  Nothing to see here.  But, once again I have to mention the fact that for the ninth day in a row, silver was not allowed to close above the $22 spot price mark, which represents its 50-day moving average.  It's obvious that JPMorgan et al are keeping the precious metal market on a very tight leash.

I have nothing else to add to today's column.  I'm disappointed that there won't be a Commitment of Traders Report or a Bank Participation Report today, but what can you do?

Prices did nothing in Far East trading on their Friday, and the same can be said for London during the first 30 minutes of their trading day.  Volumes are laughable; 12,600 contracts in gold and 3,300 in silver.  The calm before the storm perhaps?  The dollar index is flat.

And as I hit the "send" button on today's missive at 5:20 a.m. EDT, all four precious metals appear to be developing price patterns similar to what they were this time yesterday in London, a slight negative bias, and it remains to be seen if this pattern continues going into the Comex open like it did on Thursday.  Volumes at this time are still fumes and vapours, and the dollar index is up about 10 basis points.

Since today is Friday, it wouldn't surprise me in the slightest if the JPMorgan et al took prices lower in New York trading, and I'd love to be wrong about that.

Enjoy your weekend, or what's left of it, and I'll see you here tomorrow.

This is an abbreviated version of Ed Steer's Gold & Silver Daily Sign-up to have to the complete market review delivered to your email inbox each morning for free.

null

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs