Wednesday, November 27: Today in Gold and Silver
NEW YORK ( TheStreet) -- [ NOTE: There will be a column on Thursday, but it will be posted on Saturday's time schedule, which is later in the morning EST. And unless the world melts down on U.S. Thanksgiving, I won't have a column on Friday, but will be back in the saddle on Saturday. Ed]
As I mentioned in The Wrap yesterday, the spike in the gold price at the Monday night New York open got dealt with in the usual manner, and then traded flat until shortly before noon in London. The the selling pressure began anew, with the low tick of the day coming shortly before 12:30 p.m. in New York. After that, gold rallied a tiny bit into the 5:15 p.m. EST electronic close.
The December contract high and low reported by the CME were $1.257.80 and $1,239.20.Gold closed in New York at $1,242.00 spot, down $9.60 from Monday's close. Gross volume was a hair over 312,000 contracts, but netted out to only 46,000 contracts when all roll-overs were subtracted from that number. Silver's price chart was similar, but the price began to slide early in the afternoon in the Far East on their Tuesday. The absolute low came at, or just before 3:30 p.m. EST in electronic trading, although there was a secondary low shortly before 12:30 p.m. when gold printed its low tick of the day. According to the CME, the high and low ticks were $20.29 and $19.78 in the December contract. Silver closed yesterday at $19.815 spot, which was down 39 cents from Monday. Gross volume was huge, but net volume was only 9,900 contracts. Both gold and silver gave up all their Monday gains, plus a bit more. Both platinum and palladium came under selling pressure as well, with platinum hitting a new low price for this move down. Palladium avoided the same fate, but just barely. Both metals recovered a bit off their lows. Platinum finished down on the day, and palladium finished unchanged. Here are the charts. The dollar index finished trading on Monday at 80.84. From there it traded lower, and then higher in a pretty broad range, before finally rolling over and selling off as the New York trading session unfolded. The index closed at 80.75, down a whole 9 basis points from Monday. It was another losing day for the gold stocks, as they gapped down, and except for a spike going into the London p.m. gold fix at 10 a.m. EST, they continued to head south until gold hit its 12:30 p.m. low. From there the shares chopped sideways in a tight range into the close. The HUI finished down a chunky 2.72%. Not surprisingly, the chart for silver looked the same, as Nick Laird's Intraday Silver Sentiment Index closed down 2.63%. The CME Daily Delivery Report was pretty much as expected, with only 1 gold and 2 silver contracts posted for delivery on Friday, as Thursday is the Thanksgiving holiday in the U.S. That pretty much does it for the November delivery month. Maybe the First Day Notice figures for December will be available on the CME's website later this evening EST, but if not, then they'll certainly be posted there on Friday. The U.S. holiday complicates things, and there's no Commitment of Traders Report until Monday, either. There were no reported withdrawals from GLD yesterday; and as of 9:23 p.m. EST, there were no reported changes in SLV, either. But when I checked their website at 4:10 a.m. EST this morning, I note that an authorized participant withdrew 674,099 troy ounces. I got another report from the good folks over at Switzerland's Zürcher Kantonalbank yesterday, as they updated their website with the latest numbers from their gold and silver ETFs. This report is for the close of trading on Friday, November 22. Their gold ETF declined by 11,716 troy ounces, and their silver ETF had 74,975 troy ounces removed. The U.S Mint had a decent sales report yesterday. They sold 8,000 troy ounces of gold eagles; 4,500 one-ounce 24K gold buffaloes; and 107,000 silver eagles. There wasn't much in/out activity in gold on Monday over at the Comex-approved depositories. They reported receiving 31,847 troy ounces, and shipped out a tiny 484 troy ounces. The link to that activity is here. The in/out action in silver was a bit more impressive, but not by a lot. They reported receiving 1,000 troy ounces, and shipped 95,159 ounces of the stuff out the door. The link to that action is here. I don't have an awful lot of stories for you today, but some of the ones I do have are certainly worth your while, so I hope you have the time to read them.
¤ The WrapI was disappointed to see both gold and silver get sold off yesterday, but with the big roll-over activity, I wouldn't read much into it if I were you. The share price action was even more discouraging, but this too will pass. I note in the e-mail version of yesterday's column that two charts in The Wrap section were posted incorrectly. As soon as I saw it, I had them changed on the webpage, but it was too late to change them in the e-mail version as it had already gone out. If you wish to revisit what I had to say in The Wrap yesterday, which now includes the right charts, you can click here. I believe that today is the last day for roll-overs out of the December contract, as the U.S. markets won't be open on Thursday for the Thanksgiving holiday. I'm not 100 percent sure about that, so don't hold me to it. I'm not expecting much price action either today, Thursday or Friday, and I'm expecting December to go off the board quietly, as should First Notice Day, even though it's a Friday, as it's basically an extended long weekend in the U.S.A., so absenteeism on Wall Street will be high. In a story posted further up, Patrick Heller mentioned that the jobs report will come out next Friday, and that it might be a market-moving event for the precious metals. You can pretty much count on that, and all we can do is wait it out. There's not much to add to what I said in this space yesterday. I'm waiting to see what JPMorgan et al have in store for us going forward. I was somewhat miffed about the fact that, because of the U.S. holiday, the Commitment of Traders Report won't be posted on the CFTC's website until Monday. Ted Butler gave me the bad news yesterday morning. But since we made it through yesterday unscathed, it's a good bet that the next COT Report should show us at, or close to, the record numbers we saw back at the previous big low in June. Ted was wondering out loud whether or not JPMorgan et al can engineer prices even lower and get more technical fund/small trader shorting. But, as he also said, there's a limit to that, and when the last short is placed, or last technical fund long is sold, then the bottom is in. That's just the mechanics of the Comex futures market, and nothing can change that. Considering the volume of business we've been seeing at the bullion store for the last week or so, the buying public that has been paying attention, also believes that to be the case. In Far East trading, there was no price activity worthy of the name, and the same can be said now that London has been open an hour. All four precious metals are in positive territory at the moment. Net volumes are microscopic in both silver and gold, and most of the activity is now in the new front months; February for gold, and March for silver. The dollar index isn't doing much. And as I hit the send button on today's missive at 5:20 a.m. EST, I note that all four metals are now well above yesterday's closing prices now that London has been open a bit more than two hours. Gold is currently up ten bucks, as is platinum; and silver is up a bit over 20 cents, with palladium up six bucks. Net volumes in silver and gold are still very light once you subtract out all the roll-over activity, and the dollar index is down about 13 basis points. Based on this, one has to wonder what the Comex trading session will bring when New York opens at 8:20 a.m. EST this morning. That's all I have for today. And as I mentioned at the top of this column, I will have something tomorrow, but unless the world goes to hell on Thursday, I won't have a report on Friday. But I'll be back at my post on Saturday. By the way, and as a matter of interest, if you're following Comet Ison's great fall towards the sun, here's a British website that reader M.A. sent me way on the weekend, and it's worth checking out. I hope your day goes well, and I'll see you here tomorrow. I wish all my American readers a happy Thanksgiving.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts