NEW YORK ( TheStreet) -- The early rally in the gold price in Far East trading got dealt with in the usual manner---and the high tick of the day came just before 3:30 p.m. Hong Kong time, which was shortly before the London open. Then shortly after London opened, the price got sold down to $1,198 in the February contract. It recovered a bit and then traded more or less sideways until shortly after 1 p.m. in London, which was about 15 minutes before the Comex open. From there it was all down hill into the 5:15 p.m. EST close of electronic trading in New York.
The CME recorded the high and low ticks as $1,226.00 and $1,186.00 in the February contract.
Gold closed the Thursday trading session at $1,187.80 spot, which was down $30.90 on the day. Net volume was over the moon at 220,000 contracts. The gold price came within a handful of dollars of taking out its 2013 low set back in late June.There certainly was no mercy shown in the silver price action either, but it's interesting to note that all the real damage was done shortly before 9 a.m. GMT in London, which was the low tick of the day. After that, silver recovered about twenty cents from its low and didn't do much for the remainder of the day---and basically traded flat during the entire Comex trading session, including the electronic session that followed. The high and low ticks were $19.905 and $19.10 in the March contract. That's an intraday move over 4 percent. On Wednesday, silver had an intraday move of over 3 percent. Silver closed at $19.25 spot, which was down 48 cents from Wednesday. Net volume was very decent at 51,000 contracts, but I wouldn't call it heavy, at least not compared to gold. The sell-offs extended to platinum and palladium as well, but were far more subdued---and as I mentioned in The Wrap in yesterday's column, it was probably a sympathy move rather than direct intervention. Platinum finished the Thursday session down 1.28 percent---and palladium finished unchanged. Here are the charts. Just for the record, Kitco recorded gold finishing down 2.54% yesterday, whereas silver was 'only' down 2.43%. The dollar index closed late on Wednesday afternoon in New York at 80.59---and then proceeded to trade flat in an extremely tight range on Thursday, closing at 80.65, which was up a whole 6 basis points. It was obvious that the currency moves had nothing to do with the precious metal price action yesterday, as it was equally as obvious that it was all "da boyz" just doin' the dirty. The gold stocks gapped down over 2 percent at the open, hitting their low shortly after 10 a.m. in New York. From there they worked their way slowly higher at glacial speed---and the HUI finished down only 1.72%. The silver stocks gapped down---and stayed down. Nick Laird's Intraday Silver Sentiment Index closed down 2.04%. The CME's Daily Delivery Report showed that 210 gold and 11 silver contracts were posted for delivery on Monday within the Comex-approved depositories. It was Goldman Sachs as the big short/issuer with 130 contracts, followed in distant second by Canada's Scotiabank with 52 contracts. JPMorgan Chase as the only long/stopper of note picked up another 204 contracts in its in-house [proprietary] trading account. The silver contracts were split up between JPM and Scotiabank. The link to yesterday's Issuers and Stoppers Report is here. Gold continues to exit GLD. Yesterday an authorized participant withdrew 125,388 troy ounces. And as of 8:25 p.m. yesterday evening, there were no reported changes in SLV. The U.S. Mint had a sales report yesterday, if you wish to dignify it with that name, as they only sold 3,000 troy ounces of gold eagles---and that was all. It was a very busy day over at the Comex-approved depositories in gold on Wednesday, as they reported receiving 128,504 troy ounces---and shipped 125,224 troy ounces out the door. Just eye-balling the numbers, it appears that every one of the 125,224 ounces shipped out [from two different warehouses] ended up in JPMorgan's vault. This is obviously JPMorgan taking physical delivery of some of the contracts that they've stopped so far this month. The link to all that action is here---and it's worth a peek. It was even more frantic in silver, as 1,011,875 troy ounces were reported received [all in Scotia Mocatta] and 1,005,204 troy ounces were shipped out. Of the amount shipped out, 885,000 troy ounces came out of Scotia Mocatta as well, so the forklift operators had a busy day. The link to that action is here. I have the usual number of stories for you today---and some of the gold-related ones are definitely must reads. But, as always, the final edit is in your hands.