Thursday, November 14: Today in Gold and Silver
NEW YORK ( TheStreet) -- Gold rallied unsteadily through all of Far East and early London trading on their respective Wednesdays. There was a slight dip into the noon London silver fix, and then the price rallied until just before lunch in New York before getting sold down to its low of the day which came right at the 1:30 p.m. EST Comex close.
From that point, the gold price developed an immediate positive bias, before shooting up about ten buck in the last hour of trading before the 5:15 p.m. electronic close.
The CME recorded the low tick as $1,265.00, and the high tick at $1,283.70 in the December contract.Gold closed in New York at $1,282.30 spot, up $16.10 on the day. Volume, net of roll-overs, was very light at only 107,000 contracts. Here's the New York Spot Gold [Bid] chart on its own, so you can see the price action in that market in more detail. The silver price action on Wednesday was the same as the gold price action, sans the price spike just before the 5:15 p.m. electronic close. As I'm sure you've already noted, the low of the day came at the close of Comex trading as well. The CME recorded the high and low ticks at $20.855 and $20.41 respectively in the December delivery month. Silver closed on Wednesday at $20.61 spot, which was down 9 cents from Tuesday's close. Gross volume was an eye-popping 99,000 contracts, but once the [very] heavy roll-over/switches were subtracted out, the net volume fell all the way down to 40,500 contracts, the same net volume as Tuesday. I'm not exactly sure what to make of this, but it may mean nothing, however it sure got my attention. Platinum chopped sideways in a very tight price range yesterday. Palladium did the same right up until the Comex open. Then the downwards price pressure began. The low, like gold and silver, came at the Comex close, and the subsequent rally didn't get far. Here are the charts. The dollar index closed in New York late Tuesday afternoon at 81.14. After a very weak rally attempt overnight, the index rolled over in mid-morning trading in London, making it down to 81.03 by 9:20 a.m. EST in New York. The subsequent rally took the index up to its 81.28 high at, or shortly after, the London p.m. gold fix, before the dollar rolled over once more and broke through the 81.00 level to the downside, and it never recovered after that. The index closed at 81.80, which was down 24 basis points from Tuesday's close. The gold stocks gapped up about a percent and a half at the opening on Wednesday morning in New York, but quickly fell back to almost unchanged by 10 a.m. After that they didn't move much higher, and chopped around just above the unchanged mark for the entire day. The HUI closed up 0.50%. It was pretty much the same story with the silver equities, but Nick Laird's Intraday Silver Sentiment Index only closed up 0.21%. The CME's Daily Delivery Report was another quiet affair again yesterday, as only 1 lonely silver contract was posted for delivery within the Comex-approved depositories on Friday. There was a withdrawal from GLD yesterday. This time it was 86,968 troy ounces. And as of 10:05 p.m. EST yesterday evening, there were no reported changes in SLV. The U.S. Mint had a smallish sales report yesterday, as they sold 4,000 troy ounces of gold eagles and 1,000 one-ounce 24K gold buffaloes. There were no reported changes over at the Comex-approved warehouses in gold on Tuesday. In silver, there was nothing reported received, and only 130,628 troy ounces shipped out. The link to that activity is here. I have quite a few stories for you today, and I'll happily leave the final edit up to you.
¤ The WrapI promised a few words if the new Bank Participation Report (released on Tuesday) altered my calculation for what JPMorgan held short in silver and long in gold. As of November 5, I would recalibrate JPM’s short Comex silver position to be 15,000 contracts (from 17,000) and the bank’s long gold position to be 72,000 contracts (from 75,000). Considering the rotten price action this week, I would stick to my guess that JPM is now holding 80,000 net long contracts in gold (or more) and is back down to 12,000 short contracts in silver (or less). This is close to JPMorgan’s maximum long gold market corner and minimum short silver market corner. It would seem reasonable if JPMorgan decides to quit manipulating silver prices, it would do so when it was as favorably positioned as possible. - Silver analyst Ted Butler: 13 November 2013 It was pretty much a nothing day in gold and silver yesterday, and net volumes weren't overly heavy, except for my prior comments on silver's gross and net volumes. I'm not too sure if anything can or should be read into the price spike in gold in the electronic market late yesterday afternoon in New York, as looking into Far East and early London trading this morning, not much has been allowed to happen price wise since then. I'd like to mention that the very last chart in The Wrap in yesterday's column was wrong, and I didn't spot the error until long after it had been posted. The WTIC chart got posted twice. The second chart should have been the U.S. dollar index. If you noticed that fact and were wondering about it, you can go back and check yesterday's corrected ' Wrap' section here. I hope that you were able to wade through the Bank Participation Report data yesterday with little difficulty. Ted Butler's quote just above shows clearly JPMorgan's current [and expected] short and long positions in silver and gold respectively, now that he's had a chance to peruse the report himself. If all the prior week's trading data was reported in a timely manner, I fully expect that Ted's estimates for tomorrow's COT Report will live up to the advance billing that's he has given it. As I mentioned above, not much happened in Far East trading on their Thursday, and not much is going on in the first 45 minutes of the London trading day, either. But volumes are very decent in both metals already, and most of it is of the HFT variety, so it's obvious that even the smallest rally attempts are being turned back by the HFT algorithms of JPMorgan et al. And as I hit the send button on today's column at 5:15 a.m. EST, both gold and silver have been sold down to almost unchanged from their closing prices in New York yesterday afternoon. Platinum is up about twenty bucks, but obviously running into "resistance". Palladium is up five dollars. Volumes are still pretty high in both gold and silver, and the dollar index is up 26 basis points and back above the 81.00 mark. Today will be another day where I have no idea as to what kind of price action to expect in the Comex trading session, but whatever I see when I first look at the screen later this morning won't surprise me in the slightest. I hope your Thursday goes well, and if you live west of the International Date Line, I hope you have a good weekend. See you tomorrow.
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