Friday, November 15: Today in Gold and Silver
NEW YORK ( TheStreet) -- The attempted rally in gold during the Far East trading session certainly blew out the open interest by the London open as it was obvious the HFT boyz were out and about. The gold price got sold down a bit once London began to trade, and the low price tick came at 1 p.m. GMT right on the button, and 20 minutes before the Comex open in New York.
The subsequent rally ran into obvious opposition, and the vertical price spike about 10:20 a.m. EST got dealt with in the usual manner. From that high, the gold price got sold down until shortly after 2 p.m. in electronic trading, and the smallish rally off that low didn't amount to much.
The CME recorded the low and high ticks at $1,277.30 and $1,293.80 in the December contract.Although the gold price traded in a fairly tight price range, it only did so because it was being micromanaged; much like it is everyday. But some days are more obvious than others. Gold finished the Thursday session in New York at $1,287.30 spot, which was up an even $5.00 from Wednesday's close. Net volume of 137,000 contracts was 30% higher than it was on Wednesday, and although not heavy, it wasn't exactly light, either. Here's the New York Spot Gold [Bid] chart on its own so you can see the price action in North America in much more detail. Silver rallied a bit in Far East trading on their Thursday, and then faded into the 10:20 a.m. price spike visible on the chart below. Silver's price spike wasn't anywhere near as impressive as the one for gold, and silver traded quietly after that into the close of electronic trading. Since silver traded in such a tight price range yesterday, the highs and lows aren't worth mentioning. Silver closed yesterday at $20.745 spot, up 13.5 cents from Wednesday. Once again, gross volume was very heavy, but net volume was 'only' 38,000 contracts, down 10% from Wednesday's net volume figures. Platinum jumped up fifteen bucks in the first two hours of trading in the Far East on their Thursday. After that it chopped sideways. The two subsequent rally attempts during Comex trading hours in New York yesterday weren't allowed to go anywhere. Palladium rallied five bucks early on, and then traded flat for the rest of the day. Here are the charts. The dollar index closed on Wednesday afternoon in New York at 80.80, and then climbed to its 81.19 high around 11:20 a.m. GMT in London. From there it chopped lower, with the low tick of 80.87 coming at 11:15 a.m. EST in New York. Then it rallied a bit into the close, finishing the Thursday session at 81.03, which was up 23 basis points from Wednesday. Not surprisingly, the gold stocks gapped up a bit at the open, and then rallied unsteadily for the rest of the day. The HUI finished almost on its high, up 2.65%. The same can be said for the silver equities, except that they performed even better. Nick Laird's Intraday Silver Sentiment Index closed up 3.47%. The CME's Daily Delivery Report showed that zero gold and 15 silver contracts were posted for delivery within the Comex-approved depositories on Monday. Jefferies was the short/issuer on all 15, and JPMorgan was the long/stopper on 13 of them, all for its client's account. The link to yesterday's Issuers and Stoppers Report is here. There were no reported changes in GLD yesterday, but SLV reported another withdrawal. This time it was 1,637,392 troy ounces. So far this month, 3.51 million ounces have been withdrawn from SLV. There was no sales report from the U.S. Mint. Joshua Gibbons, the "Guru of the SLV Bar List" had this to say about the prior week's SLV in/out activities for the week ending on Wednesday, November 13: "Analysis of the 13 November 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 8.8 troy ounces. There was a withdrawal of 1,733,842.8 troy ounces on Monday that has not yet been reflected on the bar list, and which should appear on the next bar list [as it normally takes a day or two for the bar list to get updated." There was no sales report from the U.S. Mint. Once again there was little gold in/out activity over at the Comex-approved depositories on Wednesday. Nothing was reported received, and only 160 troy ounces were reported shipped out. And as is almost always the case, it was much busier in silver, as 300,925 troy ounces were reported received, and 601,137 troy ounces were shipped out the door on Wednesday. The link to that activity is here. Here's the latest Monetary Base chart from FRED that's published by the St. Louis Fed, and I thank Casey Research's own Jeff Clark for sending it our way. It's "Print, or die!" -- and that's precisely what they're doing. I have quite a few stories for you today, and I hope you find the time to read the ones that most interest you.
¤ The WrapA few words about the horrid silver price action the past few days, especially relative to gold. As is almost always the case, there are no legitimate supply/demand developments to account for the one dollar loss in silver so far this week. Once again, this is strictly a blatant episode of JPMorgan and allied commercials rigging prices lower to induce technical fund selling. The succession of lower lows on increasing volume virtually guarantee that this week’s COT report will show significant reductions in the total net commercial short positions for both Comex silver and gold. - Silver analyst Ted Butler: 13 November 2013 With the exception of the smallish rally in gold in the Far East, and the rally in early New York trading, which got dispatched in the usual manner, it was pretty quiet in the precious metal world yesterday. Gold volume was higher because JPMorgan et al probably had to throw a decent amount of Comex paper at these attempted breakouts to prevent them from getting out of hand. Mission accomplished, but it blew out the volume a bit. Silver's volume was actually down from Wednesday. As Ted mentioned in the quote above, we get the latest Commitment of Traders Report today for positions held at the close of Comex trading on Tuesday, and both of us are expecting it to show big improvements, as the price action during the reporting week certainly indicates that this is what the report will show. As Ted also said the other day, you know the silver and gold markets have been rigged for decades when you can forecast in advance with almost absolute certainty what will be in it, and I'll have all the details for you tomorrow. We're still not out of the woods yet as far as the precious metal prices are concerned, and it won't end until "da boyz" have taken all the blood out of the technical funds and small traders that they can. I don't know the timing, but as I mentioned either late last week, or early this week, this could drag on until we get past First Day Notice at the end of the month. With December being the biggest delivery month of the year in both gold and silver, I doubt very much that the powers that be will want too much excitement between now and then. Since they are 100% in control of prices, that's probably the scenario that we'll have, no matter what external forces want to drive the market. But they can't control prices forever, and as Chris Powell said earlier, one of these days we're going to get a big monetary/financial reset, which is something I [and others] have been talking about off and on for years; and when that day comes, you'll be either all the way in, or all the way out. There was a bit of a positive bias to precious metal price in early trading in the Far East on their Friday, but as the Hong Kong trading day wore on, prices faded. All four precious metals are back at, or below, their Thursday afternoon New York closes going into the London open, which occurred a few moments ago as I write this paragraph. Volumes are exceedingly light, and the dollar index is comatose. More than two hours have passed since I wrote the above paragraph, and I note that all four precious metals are below where they were at the London open, and volumes in gold and silver are almost double what they were then, especially silver volume. But, having said that, overall volumes aren't all that heavy. Net volume in gold is 21,000 contracts, and in silver it's 5,500 contracts. And as I hit the send button at 5:10 a.m. EST, gold is down about six bucks, and silver is down 15 cents. The dollar index still isn't doing a thing. Precious metal trading in New York on a Friday always makes me nervous, and I shan't hazard a guess as to what JPMorgan et al have in store for us for the remainder of this trading session. But nothing should surprise you, dear reader, as it certainly won't surprise me. That's all I have for this column, which is more than enough. Enjoy your weekend, or what's left of it, and I'll see you here tomorrow.
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