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Wednesday, October 30: Today in Gold and Silver

NEW YORK (TheStreet) -- The gold price didn't do much in the early going in the Far East on their Tuesday.  The price popped a bit at 10 a.m. Hong Kong time, that rally ended as quickly as it began.  The the HFT boys showed up about 15 minutes before the London open, and the price was down about ten bucks in a few seconds.

From there the price didn't do much until the noon silver fix in London.  The rally that began at that point lasted until just after 10 a.m. in New York, where it met the same fate as a similar rally did on Monday about the same time.

The CME recorded the high and lows ticks as $1,339.80 and $1,360.40 in the December contract.

The gold price finished the Tuesday session at $1,344.30 spot, which was down $8.90 from Monday's close.  Volume, net of October, November and February, checked in at 128,000 contracts.

Silver's price path was nearly identical to gold's, except the price was more 'volatile'.  The CME's daily low and high were reported as $22.30 and $22.63 in December.

Silver closed on Tuesday at $22.52 spot, up a whole penny from its Monday close in New York.  Net volume wasn't overly heavy at 32,000 contracts.

The platinum and palladium price moves were similar to gold and silver's.  Here are the charts.

The dollar index closed on Monday afternoon in New York at 79.34.  From there it rallied unsteadily during the Far East and early London trading sessions.  There was a down/up move between 10 and noon in New York, and after that the index chopped sideways into the close.  The index finished at 79.61, which was up 27 basis points from Monday.

The gold stocks opened down a percent or so, and then rallied a hair until around 11 a.m. EDT.  Then down they went with hardly a backward glance.  The HUI finished lower by 2.90%.

The silver equities opened almost unchanged, but it was all down hill from there.  Despite the fact that the silver price itself finished basically flat on the day, the stocks got clubbed to the tune of 2.42%.   Here's Nick Laird's Intraday Silver Sentiment Index chart.

The CME's Daily Delivery Report showed that 5 gold and 12 silver contracts were posted for delivery on Thursday, the last day for delivery into the October contract.  First Day Notice for delivery into the November contract [which is not a normal delivery month for either silver or gold] should be posted on the CME's Web site late this evening EDT, and I'll have the numbers for you tomorrow.  The link to yesterday's activity is here.

There were no reported changes in GLD yesterday.  And as of 10:35 p.m. EDT, there were no reported changes in SLV, either.

The U.S. Mint had another sales report on Tuesday.  They sold 4,000 ounces of gold eagles; 1,000 one-ounce 24K gold buffaloes; and 194,500 silver eagles.

There were no reported movements either in or out in gold and the Comex-approved depositories on Monday.

As is almost always the case, there was more activity in silver, as they reported receiving 706,783 troy ounces, but shipped nothing out.  Almost all of it went into CNT Depository, Inc.  The link to that activity is here.

I have the usual number of stories, and a lot of them, especially some of the ones posted in the precious metal section, are must reads.

¤ The Wrap

I still remain in a state of surrealism when it comes to the legal developments of JPMorgan. When I first started accusing the bank of manipulating silver (and gold) prices five years ago, JPMorgan had a squeaky clean image as one of the heroes in the financial crisis. Today, it’s hard to imagine the bank doing anything on the up and up. And what are the odds that JPMorgan could do so much wrong in so many different lines of its business and not be guilty of manipulating silver and gold? Is it possible that JPMorgan is only aboveboard and legitimate in Comex gold and silver and not in anything else? 

I am still convinced that the CFTC and the Justice Department has incontrovertible evidence and proof that JPMorgan has manipulated silver and gold prices as I have outlined for five years. The only reason the government is not charging JPMorgan is because of the knockout blow it would land on the bank and, by extension, the financial system. But that blow is coming one way or another. - Silver analyst Ted Butler: 26 October 2013

Even though there wasn't a lot of price action yesterday, it was obvious that the HFT boyz were out and about.  The most obvious was that little down-draft that came about 15 minutes before the London open yesterday morning.

I'm keeping an eye on the 50-day moving averages in both gold and silver.  We did penetrate both to the upside last week, but it's clear that, at least for the moment, they're not being allowed to advance.  And as I've mentioned many times in the past, it remains to be seen if JPMorgan et al are setting prices up to fail once again at this critical moving average.  The six-month charts are below, and only time will tell.  We may find out later today which way the prices will break, or be allowed to break.

As for the Andrew Maguire/Jeffrey Christian debate, it appears that Mr. Christian does not want it to go away anytime soon.  The mail I'm getting comes firmly down in support of Andrew, even if a lot of is only because nobody can stand Jeffrey, and I can empathize with that totally.  As I said late last week, although I've never met the man, I've never heard a kind word spoken about him by people who have either met him, or had personal dealings with him over the years.  The characters of a lot of the people that I know that have met him, are beyond reproach, so I'd guess he's precisely what they say he is.  He's a Jon Nadler-type with more brains, and he's not interested in the truth, only his version of it, and it's hard to write about him without being contemptuous, so I'll stop here for the moment.

However, on the other side of this issue, Bron Suchecki "down under" at The Perth Mint had this to say in a posting over at the silverstackers.com forum on Monday local time in Australia.

Bron will do a post on this story as he thinks it is important whether Andrew lied (or lied by omission by not correcting GATA about their CFTC testimony, for example) about his CV because his main claim to fame is his statement that he overheard some traders in a pub talking about manipulation. As that statement is based entirely on Andrew’s word, anything which calls his integrity into question, matters. Throw in the fact that soon after that he had a trading service to sell and benefited from his new-found fame, then he think it's fair to hold Andrew to a high standard of truthfulness and transparency. He also notes that Andrew’s statement does not dispute anything Jeff said in his presentation, the text of which can be found linked here.

But having said all this, and leaving everything above aside for moment, I have no problem believing what Andrew said in front of the CFTC.  Maybe he didn't have all his facts straight, and that is a possibility, but in the broad strokes he was correct.  What is left has to do with his character, and with the likes of Mr. Christian saying what he said, it's more than a case of the pot calling the kettle black.

What Jeffrey is saying may, in part, be correct; but you have to ask yourself just why he's bringing it up at this juncture.  Why not when it first occurred?  But regardless of that, it's a straw man, and takes away from the facts of the case, and that, as Ted Butler has said for years now, is that JPMorgan is guilty as charged courtesy of the CFTC's own data.  Of course a man of Mr. Christians integrity conveniently avoids the obvious with the same fear as a vampire avoids the light of day, an apt comparison in my opinion, especially with Hallowe'en coming up tomorrow.

All four precious metals hopefully set their lows for the day around 10 a.m. in Hong Kong trading on their Wednesday, and all are in positive territory as I hit the send button on today's missive at 5:30 a.m. EDT.  Volumes aren't overly heavy, but are all of the HFT variety, as there are no roll-over to speak of.  The dollar index has been comatose since the 6 p.m. EDT New York open last night.

I'm more than interested in what develops as far as price action is concerned in all four precious metals as the trading day begins in New York.  If forced to bet a dollar, I'd put it on the "UP" square, but would be resigned to the fact that I might lose it.  What I'm really interested in, if prices do rally, is whether or not JPMorgan et al go short or sell longs into it to cap it, just like they've always done.  And as Ted Butler has been going on for year about, that sequence of events is all that matters.

He would be right about that.

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.

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