NEW YORK ( TheStreet) -- The gold price didn't do much in Far East trading on their Tuesday, but a tiny new low was set around 1:30 p.m. Hong Kong time. From there, gold rallied back above the $1,200 price mark. Then around 11:15 p.m. the price began to decline. Ted said that it was JPMorgan et al "spoofing" prices lower. And once Monday's closing price was taken out at 8:45 a.m. in Comex trading, the technical funds went short some more---as JPMorgan et al took the long side of those trades---and the price plunged over twelve bucks in a few seconds.
The tiny rally that followed exploded in a flurry of what was probably a combination of short covering by technical funds---and long buying by JPMorgan et al at 9:50 a.m. EST. That rally ran out of gas/got capped at the London p.m. gold fix, which came minutes after 10 a.m. EST.---about 15 minutes after the rally began.
From gold's high of the day, the price slowly declined until it stuck its nose back below the $1,200 spot price market shortly before 3 p.m. in New York. At that point a buyer showed up---and gold closed above the $1,200 spot.The low and high ticks were recorded by the CME as $1,181.40 and $1,214.00 in the February contract. Gold closed on New Year's Eve in New York at $1,205.50 spot, which was up $8.80 from Monday's close. Volume was an impressive 127,000 contracts. And as incredible as the price gyrations were in gold, it was off the charts in silver, as JPMorgan et al pulled out all the stops. However, the price pattern was virtually identical, so I shan't waste any time talking about it. The intraday price move was well over a dollar---and the CME recorded the low and high as $18.72 and $19.825 in the March contract. Silver never got a sniff of the $20 spot price mark, closing the Tuesday session at $19.445 spot, which was down 12 cents from Monday. Net volume was an astounding 46,000 contracts. It was more or less the same routine in both platinum and palladium, but both reported a decent gain on the day---finishing up a percent or so. Here are the charts. The dollar closed on Monday afternoon in New York barely above the 80 mark at 80.01. From there it rallied it tiny fits and starts, finishing the Tuesday session at 80.205 which was up 20 basis points from its prior close. The gold stocks opened in the red, but rallied strongly almost immediately, even before 9:50 a.m. EST gold price melt-up going into the London p.m. gold fix. From that point, the stocks gave up a bit of their gains before trading sideways for most of the day, but rallied into the close, finishing almost on their highs of the day. The HUI closed up 2.42%. The chart pattern in the silver equities was virtually the same as the HUI, except the silver stocks closed on their absolute high ticks of the day. Nick Laird's Intraday Silver Sentiment Index closed up 2.47%. The CME's Daily Delivery Report showed that 1 gold and 72 silver contracts were posted for delivery on Friday within the Comex-approved depositories. JPMorgan out of its in-house [proprietary] trading account delivered 58 contracts---and ABN Amro came up with 10 contracts. The only long/stopper of note was Canada's Bank of Nova Scotia with 70 contracts. The link to yesterday's Issuers and Stoppers Report is here. There were no reported changes in either GLD or SLV yesterday---and no sales report from the U.S. Mint, either. Monday was a very busy day over at the Comex-approved depositories---especially in silver. In gold, these depositories reported receiving 63,996 troy ounces of the stuff---and all of it went into the HSBC USA depository. The link to that activity is here. But the fork lifts were real busy moving silver around, as 1,810,657 troy ounces were reported received---and 1,216,360 troy ounces were shipped out the door. Of the amount received, a third of it disappeared into JPMorgan's vault---and all of the silver JPM received came out of Scotia Mocatta's vault. The link to that action is here---and it's worth a quick peek. I have a decent number of stories today---and I hope you have the opportunity to read the ones that interest you.