NEW YORK ( TheStreet) -- The gold price traded flat until 3 p.m. Hong Kong time, and then developed a negative bias from there. But a few minutes before 11:30 a.m. in London, and I was watching the screen at the time, the HFT boyz shaved ten bucks off the price in just a few seconds. Here's the Kitco chart of that event that I saved about 15 minutes after it occurred.
Here's the Nanex two-minute chart of the same event. Note that the event was over in seconds, as the stops got run, and trading was halted for twenty seconds to restore "liquidity". I thank Casey Research's own Bud Conrad for sending that chart around yesterday morning, and I have a Zero Hedge piece in my Critical Reads section further down that's worth your while. But it's linked here if you just can't wait.Once the "new and improved" lower price was set, it triggered more sell stops and the brain dead technical funds and small traders followed the script to a "T"; selling long positions and going short even more than they already were. On the other side of that trade, both JPMorgan and the raptors were happily doing the opposite. This is the price fixing scenario that Ted Butler has been talking about for more than a decade. This lasted until the London p.m. gold fix. The subsequent rally got cut off an the knees at precisely 10:30 a.m. EST, and the price decline more or less continued uninterrupted until the Fed news was released at 2 p.m. At precisely that moment the HFT traders showed up again, and you know the drill from there, dear reader. The low of the day came shortly before 3 p.m. in electronic trading, and the price didn't do much after that. The CME recorded the high and low ticks at $1,275.70 and $1,240.20 in December. Gold close in New York at $1,24.80 spot, down $32.40 from Tuesday. Gross volume was over the moon at way over 200,00 contracts. The net volume was 187,000 contracts, an increase of 115,000 contracts from Tuesday. Here's the New York Spot Gold [Bid] chart on its own. Note the precise 10 a.m. and 2 p.m. hits on the gold price. The silver price action was virtually identical to gold's, and the chart's are exactly the same. In a free market, these sort of correlation are just not possible. The CME reported the high and low in the December delivery month as $20.49 and $19.78; which is another new low close for this move down. Silver finished the Wednesday session at $19.85 spot, which was down 49 cents from Tuesday's close. Silver's gross volume was a hair under 81,000 contracts, but roll-overs were very heavy, and by the time the smoke cleared, net volume was down to 42,000 contracts, which is almost double the net volume posted on Tuesday. Since I included the New York sport price chart for gold, here it is for silver as well. And as I said, they are almost tick for tick identical. The platinum and palladium charts turned out to be [very] mini versions of what the gold and silver charts looked like, and both these precious metals finished down on the day as well. Here are their respective charts. Kitco recorded the losses as follows: gold down 2.54%, silver down 2.41%, platinum down 1.63%, and palladium down 1.11%. The dollar index closed at 80.54 late on Tuesday afternoon in New York. Once trading began in the Far East, there was a tiny rally that lasted until shortly before 10 a.m. GMT in London, but by 10:15 a.m. EST in New York, it was back to its Tuesday close. Then the index blasted skyward, and by the end of the trading day on the U.S. East Coast, the index closed at 81.06; up 52 basis points on the day. If you check all four precious metal charts, you'll note that the simultaneous 2 p.m. "sell offs" began about 15 minutes before the dollar index headed north. Not surprisingly, the gold shares gapped down about a percent at the open, and they proceeded to trade sideways until the big 2 p.m. smash down. The equities bottomed shortly after 3 p.m. in New York trading, and then rallied a hair in the close. The HUI finished down 3.29%. The silver equities got it in the neck as well, and Nick Laird's Intraday Silver Sentiment Index finished lower by 3.46%. The CME Daily Delivery Report showed that zero gold and 15 silver contracts were posted for delivery on Friday, and the link to yesterday's Issuers and Stoppers Report is here. Another day, and another withdrawal from GLD, as an authorized participant withdrew 86,836 troy ounces. And as of 9:25 p.m. EST yesterday evening, there were no reported changes in SLV. The U.S. Mint had another smallish sales report yesterday, as they sold 3,500 troy ounces of gold eagles and 500 one-ounce 24K gold buffaloes. Having already sold their weekly allotment of 500,000 silver eagles, there won't be another update sales report on these until next Monday. It was another quiet day in gold on Tuesday at the Comex-approved depositories. They reported receiving 771 troy ounces, and shipped out exactly the same amount. The link to that activity is here. There was heavier activity in silver, though. These same depositories didn't receive any on Tuesday, but did ship out 333,869 troy ounces for parts unknown. The link to that action is here. Since yesterday was the 20th of the month, The Central Bank of the Russian Federation updated their website with their October numbers, and for the third month in a row they didn't report buying any gold for their reserves. Their visible gold holdings still sit at 32.6 million troy ounces. There's a good chance that they may be pulling a "China"; buying the stuff hand over fist, but not reporting it until the time is right, whenever that might be. Here's Nick Laird's most excellent chart, for which I thank him. I have the usual number of stories for a weekday column, and I hope there are some in here that will interest you.