NEW YORK ( TheStreet) -- The gold price didn't do a thing in early Far East trading on their Wednesday, and began to develop a negative bias shortly after 10 a.m. Hong Kong time. The low of the day came at the noon silver fix in London, and the subsequent rally [such as it was] got capped at 11:45 a.m. EDT. Gold then got sold down until the 1:30 p.m. Comex close, then traded flat into the electronic close at 5:15 p.m. in New York.
The CME recorded Wednesday's low and high as $1,328.50 and $1,342.20 for the December contract.
Gold closed in New York at $1,333.70 spot, which was down $7.50 from Tuesday. Volume, net of October and November, was very light at only 103,000 contracts.Here's the New York Spot Gold [Bid] chart on its own. Despite the low volume, you can tell from the sawtooth price pattern, there was an active seller capping every rally attempt, no matter how tiny. It was more or less the same chart pattern in silver. The low was at the London silver fix, and the high was at 9 a.m. EDT when the price got capped and then sold down 20 minutes after the Comex open. The tiny rally after that peaked out at 11:30 a.m. EDT, and from there developed a slightly negative bias into the close of electronic trading. The CME recorded the low and high as $22.50 and $22.82 in the December contract. Silver closed at $22.56 spot, which was down 14.5 cents from Tuesday. Volume, net of October and November, was a smallish 28,500 contracts. As a long-time observer of the daily price activity, both on a micro and macro level, it was obvious that a seller of last resort was at work shaping the price curve in both gold and silver, particularly during the Comex session. Both platinum and palladium had similar chart patterns. The lows came at 11 a.m. in Zurich, and the highs were at noon in New York. After that, both got sold down not only below their Tuesday closing prices, but below their respective Monday closing prices as well. Here are the charts. The dollar index wandered in a 20 basis point range around it's Tuesday afternoon close in New York, which was 79.26. The index closed late Wednesday EDT at 79.28. Nothing to see here. The gold stocks opened down about a percent, but then rallied back to just above unchanged. That state of affairs lasted until 11:45 a.m. EDT. At that point the gold price had reached its New York high, and had begun to fade. The gold stocks faded even faster, and by the close of trading, the HUI had given up a large percentage of Tuesday's gains, as it finished down 2.98%. The silver shares followed almost the same price path as the gold stocks, but gave up all of Tuesday's gains and a lot more by the time trading ended on Wednesday. Nick Laird's Intraday Silver Sentiment Index closed down 3.79%. The CME's Daily Delivery Report showed that zero gold and six silver contracts were posted for delivery on Friday. The link to yesterday's Issuers and Stoppers Report is here. There were no reported changes in GLD yesterday, but I'm happy to report that an authorized participant added 2,408,695 troy ounces of silver to SLV, and it's probably owed a lot more. There was a tiny sales report from the U.S. Mint yesterday. They sold 500 ounces of gold eagles and 500 one-ounce 24K gold buffaloes. Over at the Comex-approved depositories on Tuesday, they reported receiving 32,150 troy ounces of gold, which is precisely 1.000 tonnes of the stuff. All of it went into JPMorgan's warehouse. Only 199 troy ounces were reported shipped out. The link to that activity is here. As usual, the big movement was in silver. These same depositories reported receiving 839,438 troy ounces, and shipped 35,636 ounces out the door. Of the amount received, JPMorgan took in 539,048 troy ounces. The link to that action is here. I received an update from Switzerland's Zürcher Kantonalbank about an hour before I hit the send button today's column. They updated their gold and silver ETFs as of the close of business on Friday, October 18. During that reporting week, they added a smallish 6,006 troy ounces to their gold ETF, but 216,310 troy ounces were removed from their silver ETF. Just as point of interest, JPMorgan Chase is now the second largest holder of physical silver within the Comex-approved warehouse system. As of Tuesday, they held 38,147,044 troy ounces of the stuff. Only HSBC USA holds more. They have 46,566,359 troy ounces. Canada's Bank of Nova Scotia [Scotia Mocatta], the other big silver short on the Comex, holds 21,082,648 troy ounces of the stuff. It's my opinion that these banking entities shown above represent three of the "Big 4" Commercial traders holding short positions in the Comex futures market in silver, with JPMorgan's short-side corner by far the largest position of the three. And another point of interest: On May 1, 2011 which was the day of the drive-by shooting in silver that we remember all too well, JPMorgan Chase had zero ounces of silver stored on the Comex. They began accumulating the metal immediately after that event. That can't be a coincidence. Here's the chart courtesy of Nick Laird over at sharelynx.com. I have very few stories for you today, so it shouldn't take too much time to read the ones that strike your fancy.