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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Friday, November 1: Today in Gold and Silver

NEW YORK (TheStreet) -- The price pressure was on gold almost throughout the entire Thursday trading day everywhere on Planet Earth, with the final coup de grâce coming just after 11:30 a.m. GMT in London.  The low of the day was at 12:45 p.m. EDT in New York, and the smallish recovery wasn't allowed to get far.

The CME recorded the high and low as $1,343.00 and $1,318.70 in the December contract.

Gold closed yesterday at $1,322.70 spot, which was down $20.20 on the day.  Net volume was 147,000 contracts, a hair less than Wednesday's volume.

In silver, the footprints of the high-frequency traders were far more obvious.  They hit the price at the 6 p.m. open in New York on Wednesday evening, again at 9 a.m. Hong Kong time, then around 11:30 a.m. GMT in London, and once again at the 8:20 a.m. EDT Comex open.  Like gold, the silver price wasn't allowed to get far after that.

According to the CME, the December high and low were $22.69 and $21.73.

Silver finished the Thursday session at $21.905 spot, down 83 cents from Wednesday's close.  Net volume was decent at around 49,500 contracts.

Here's the New York Spot Silver [Bid] chart, which shows the HFT action at the Comex open.  No for-profit seller ever sells like that, ever!

Neither platinum or palladium were spared, either.  Here are the charts.

The dollar index closed on Wednesday at 79.74, and then chopped sideways until 9 a.m. GMT in London.  The subsequent rally topped out around the 80.26 mark at 4 p.m. EDT before trading sideways into the electronic close.  The index finished at 80.24, which was up 50 basis points from Wednesday's close.

The gold stocks gapped down and stayed down.  The HUI finished down 3.60%.

As bad as it was for the gold shares, the silver shares got clubbed, as Nick Laird's Intraday Silver Sentiment Index closed down to the tune of 4.53%.  A lot of the junior producers did even worse.

The CME's Daily Delivery Report for Day 2 of the November delivery month showed that zero gold and only 6 silver contracts were posted for delivery on Monday.  As I said two days ago, November is not a delivery month for either gold or silver, and that's why there's been little activity.  You can expect similar reports for the remainder of the month.

There were no reported changes in GLD yesterday, and as of 9:53 p.m. EDT, there were no reported changes in SLV, either.

Joshua Gibbons, the Guru of the SLV Bar List, updated his Web site with the latest inventory figures from SLV as of the close of business on Wednesday.  This is what he had to say: "Analysis of the 30 October 2013 bar list, and comparison to the previous week's list: 810,171.3 troy ounces were removed (all from Brinks London), 4,376,062.1 ounces were added (all to Brinks London except 40,197.0 oz. to JPM London V). No bars had a serial number change."

"The bars removed were from: Noranda (0.2M oz), Johnson Matthey (0.2M oz), Handy Harman (0.1M oz), and 16 others. The bars added were from: Kazakhmys (0.8M oz), Solar Applied Materials (0.7M oz), Russian State Refineries (0.7M oz), and 20 others."

"As of the time that the bar list was produced, it was overallocated 1,174.0 oz. All daily changes are reflected on the bar list."

The folks over at Switzerland's Zürcher Kantonalbank updated their gold and silver ETFs as of the close of business on Friday, October 25.  There was a tiny withdrawal of 1,707 troy ounces of gold, and 147,830 troy ounces of silver.

There was another tiny sales report from the U.S. Mint yesterday.  They sold another 1,000 ounces of gold eagles.

For the third day in a row, there was no in/out movement in gold within the Comex-approved depositories on Wednesday.

But it was another really big in/out day in silver.  These same depositories reported receiving 1,140,360 troy ounces, and shipped out 643,606 troy ounces.  The link to that action is here, and it's worth a quick look.

Much to my surprise, there was another Commitment of Traders Report issued on Wednesday, the second one this week, and the third since last Friday.  This one was for the week ending at the close of Comex trading on Tuesday, October 15.

During that reporting week, the price of gold was engineered lower to the tune of around $70 from its high tick to its low tick. In silver, it was around $1.75.  Needless to say this resulted in a big improvement in the internal structure of this COT report compared to the week prior, as the tech funds and small traders either puked up longs as sell stops were hit, or went short.  The Commercial traders [read JPMorgan et al] went long and covered shorts and rang the cash register one more time.

In silver, the Commercial net short position declined by 1,993 contracts, or 9.97 million ounces.  As of the October 15, the Commercial net short position was down to 96.4 million ounces.

In gold, the improvement was monstrous, as the Commercial traders reduced their short position during the reporting week by a chunky 25,592 contracts, or 2.56 million ounces.  The Commercial net short position, as of the close of trading on October 15, was down to 6.48 million ounces.

Here's the 30-day gold charts for gold and silver.  Note the price declines in both in the five reporting days up to and including the Tuesday, October 15th cut-off date.  This decline didn't happen by accident, and "da boyz" made huge money on this decline.

Using the past as prologue, I would suspect that there will be another COT Report at the usual 3:30 p.m. EDT today.  If there is, it will be for the trading week ending October 22.  [Note the 5-day rallies in both metals during that period on the charts above.] If there is, I'll have have something on it tomorrow's column, plus what I can glean from my daily conversation with Ted Butler.

Here's a FRED chart that Casey Research's own Jeff Clark sent my way yesterday.  Get used to the shape of that graph, because it's not going to change until the U.S. dollar finally goes bust.

Despite my best editing efforts, I still have a lot of stories for you today, so I hope you can find time either now, or over the weekend, to read the ones that interest you.

¤ The Wrap

There are no markets anymore, only interventions. - Chris Powell, GATA: April 2008

Well, it was "trick" time for JPMorgan et al this Hallowe'en, as they "hit" the precious metals pretty hard, especially their big problem child which is silver.  The equities got crushed in the process, which was not a happy way to end the month.

As Ted Butler keeps on saying, the high-frequency traders spin prices lower, and once sell stops are hit, the real selling begins, and JPMorgan et al cover shorts and go long themselves, ringing the cash register in the process.  This has been going on for years now, and it's amazing that no matter how many times that Ted mentions it in the public domain, nobody seems to "get it."

This is what happened yesterday, and also in the Commitment of Traders Report I discussed further up in this column.   The CFTC won't do a thing about it, and the dumber-than-dirt miners keep on digging silver and gold out of the ground at whatever JPMorgan-engineered sale price is going on at the time.  And with JPMorgan's short-side corner in platinum and palladium, it's going on in those metals as well.

As I mentioned earlier, since today is Friday, it's entirely possible [but not guaranteed] that we'll get another Commitment of Traders Report today at 3:30 p.m. EDT.  If you check the 30-day gold and silver charts posted just above the Critical Reads section above, you will note that both metals rallied every day in the October 16-22 reporting period that today's possible COT Report will cover.  It's a given it will show that the tech funds and small traders dumped their just-acquired short positions and maybe put some long contracts on as well.  On the other side of the equation, its a certainty that JPMorgan et al were doing the exact opposite, and getting set up for the next engineered price decline, which may have started at 2 p.m. on Wednesday with the FOMC news.  Aren't rigged markets just grand?

This may mean that we're not be out of the woods yet on this down leg, as "da boyz" may have more profits to wring out the technical funds and small traders.  However, it's really not possible to tell at the moment.  Only when it's over and we're on our way back up again will we know for sure.

Absolutely nothing happened in overnight trading in the Far east on their Friday, and the same can be said now that London has just opened.  Volumes are microscopic, so it doesn't look like the HFT boys are around at the moment, and if they are, they're being very quiet.  But as you already know, their active presence in the market always bears their trademark signature, a sharp spike to the downside.

The dollar index isn't doing a thing, either.

And as I hit the "send" button on today's efforts at 5:25 a.m. EDT, I note that minutes after the London open, some price pressure appeared in both gold and silver, and a small spike down in silver occurred around 9 a.m. GMT.  For the moment, both platinum and palladium appear unaffected.  Needless to say, volumes have picked up, but are still pretty light.  The dollar index spiked up about 20 basis points at the London open as well.

Since today is Friday, it will be another day where nothing will surprise me as far as price action is concerned when I power up my computer later this morning.

Before heading off to bed, I'd like to remind you that today is the last day that you can sign up for the Casey OnePass.  It's one heck of a bargain, and you can read all about it here.  Naturally, Casey Research's 90-day risk-free policy applies in full.

Enjoy your weekend, or what's left of it if you live west of the International Date Line, 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.

Stock quotes in this article: GLD, SLV 
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.

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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