NEW YORK ( TheStreet) -- The gold price got sold off a few dollars in early Far East trading, but the price was back to unchanged by the London open. Then at 9:45 a.m. GMT the gold price rallied, only to get capped by 10 a.m. GMT by a wall of HFT selling.
The gold price began rallying anew just moments before the Comex open, but got capped at the London p.m. gold fix---and then chopped sideways into the 5:15 p.m. EST close of electronic trading in New York.
The low and high ticks were reported as $1,230.80 and $1,267.00 in the February contract.Gold closed in New York yesterday at $1,264.60 spot, up $27.80 from Wednesday's close. Net volume was pretty chunky at 159,000 contracts. Silver hit its HFT-induced low tick at 10 a.m. Hong Kong time on their Thursday---and then rallied quietly up until 9:45 a.m. in London. Then, like gold, away went the price to the upside, only to get capped 15 minutes later on huge volume. The rally at the noon London silver fix ended the same way---and from there the silver price got sold down a bit into the Comex open. The rally from that point also ended at the London p.m. fix---and from there the not-for-profit sellers hammered the price back to the $20 spot mark shortly after that. Then even the tiniest rally got capped after that---and silver was forced to trade sideways for the remainder of the New York session. The CME Group recorded the low and high ticks at $19.645 and $20.31 in the March contract. Silver closed nowhere near its high of the day at $20.015 spot, up 22 cents on the day. Volume, net of January and February, was very heavy at 55,500 contracts. The platinum price action was similar to gold and silver's---and the rallies, along with the price cappings, obviously came at the same times. Palladium didn't do much---and both metals closed down a couple of bucks on the day. Here are the charts. The dollar index closed on Wednesday in New York at 81.19---and then chopped sideways until about 3:20 p.m. Hong Kong time. Then the roof caved in. By the time the low tick was in at 4 p.m. in New York on Thursday, the index had fallen all the way down to 80.42. From there it recovered a few basis points into the close, finishing the Thursday session at 80.48---which was down 71 basis points from the prior day. Not surprisingly, the gold stocks gapped up at the open---and hit their highs at the London p.m. gold fix about 10:10 a.m. EST. From there they sold down a percent, before trading almost ruler flat into the close. The HUI finished up only 2.70%---and didn't even gain back all its loses from Wednesday when the gold price lost less than four bucks. The silver equities were up 4% by the London p.m. gold fix, but most of those gains melted away once JPMorgan et al took silver out behind the woodshed after that. Nick Laird's Intraday Silver Sentiment Index closed up only 1.33%. The CME Daily Delivery Report showed that 51 gold and 11 silver contracts were posted for delivery on Monday within the Comex-approved depositories. Jefferies was the short issuer on 50 gold contracts and 10 of the silver contracts---and Canada's Bank of Nova Scotia was the long/stopper on all the contracts that Jefferies issued. The link to yesterday's Issuers and Stoppers Report is here. Another day---and another withdrawal from GLD. This time an authorized participant took out a chunky 173,552 troy ounces. And as of 9:39 p.m. EST yesterday evening, there were no reported changes in SLV. While on the subject of SLV---Joshua Gibbons, the "Guru of the SLV Bar List" updated his website with the data from the current reporting week for SLV---and here is what he had to say: "Analysis of the 22 January 2014 bar list, and comparison to the previous week's list --- 4,241,905.5 oz were added (all to Brinks London), and no bars were removed or had a serial number change." "The bars added were from: Solar Applied Materials (1.6M oz), Aurubis AG (0.9M oz), Krasnoyarsk (0.4M oz), KCM SA (0.3M oz) and 8 others. As of the time that the bar list was produced, it was overallocated 746.5oz. All daily changes are reflected on the bar list" The link to Joshua's website is here. There was a tiny sales report from the U.S. Mint yesterday. They sold 34,500 silver eagles---and that was it. Once again there was no reported in/out movement in gold at the Comex-approved depositories on Wednesday. There was some activity in silver, as 25,001 troy ounces were reported received---and 176,513 troy ounces were reported shipped out. The link to that activity is here. Here's a chart that West Virginia reader Elliot Simon sent our way yesterday. It shows the decline in mortgage originations at three of the big U.S. banks---and the bars tell all. Here's the pertinent part of a Zero Hedge story from yesterday that reader M.A. sent our way. The headline reads " Stocks Spanked; Gold Glistens; Currencies Crushed; And Bond Bears Battered". Quite a day…
- All-time record lows in many Emerging Market Currencies (TRY, ARS, VENZ (unof.) most)
- Nikkei 225 -3.75% - biggest drop in 7 months
- Emerging Market Stocks -3% - (4 month lows)
- USD Index -0.7% - biggest drop in 3 months (2014 lows)
- USDJPY -1.3% - biggest drop in 5 months
- AUDJPY -2.35% - biggest drop in 7 months (4 month lows)
- Dow -1.3% - biggest drop in 5 months (5-week lows)
- 30Y Treasury Yield -9bps - near biggest drop since April 2013 (2-month lows)
- Gold +2.3% - biggest gain in 3 months (2 month highs)
- VIX +1.8vols - biggest jump in 3 months (1 month highs)
- IG Credit +2.5bps - biggest jump in 5 months (1 month wides)
- HY Credit -$0.5 - biggest drop in 4 months (1 month lows)