NEW YORK ( TheStreet) -- The gold price didn't do a whole lot of anything during the Far East trading day on their Monday. Their was a slight dip going into the London open, with the low of the day coming shortly before 9 a.m. GMT. The subsequent rally was less than impressive, but once the London p.m. gold "fix" was in at 10 a.m. EST---the gold price blasted higher in a short covering rally that immediately turned into a "no ask" market. The sellers of last resort were there in an instant---and within a couple of hours, the rally had been crushed. After that, the gold price didn't do much.
The CME Group recorded the low and high ticks at $1,240.40 and $1,266.10 in the April contract.
Obviously the gold price finished well off its high---and Kitco recorded that at $1,257.10 spot, up $11.20 from the Friday close. Net volume was around 130,000 contracts. One can only fantasize about what the close might have been if JPMorgan et al hadn't put in an appearance.The chart pattern in silver was identical---and for the same reasons as they were in gold. The CME recorded the low and high as $19.06 and $19.62 in the March contract. Silver closed at $19.335 spot, up 17 cents from Friday. But, if left to its own devices, it could have easily have been up $17. Net volume was around 30,000 contracts. The platinum chart was a mini version of the gold and silver charts. But JPMorgan et al began hammering the palladium price about 15 minutes before the Comex open---and instead of finishing the day up a bunch, as it looked like it was going to do, JPMorgan et al closed it unchanged. Here are the charts. The dollar index closed on Friday afternoon in New York at 81.25. When it opened in Far East trading on their Monday, it struggled up to 81.32---and then hung on until the 8 a.m. GMT London open. From there it chopped lower, until a not-for-profit buyer showed up to catch the proverbial falling knife at the 81.000 mark about 11:20 a.m. EST---and from there it didn't do much. The index closed the Monday session at 81.07---which was down 18 basis points from Friday's close. The gold stocks gapped up a bit at the 9:30 a.m. EST market open---and then spiked higher on the blast off at the London p.m. gold fix. But that was all she wrote, as the stocks chopped lower for the remainder of the session---and a thoughtful soul sold them into negative territory minutes before the 4 p.m. EST close. The HUI finished lower by 0.15%. The chart pattern in the silver stocks was similar, but on much weaker price action---and Nick Laird's Intraday Silver Sentiment Index closed down 1.10%. I would guess that some of the weakness in the latter part of the trading day should be attributed to the fact that the general equity markets got smoked yesterday, so I wouldn't read much into yesterday's declines. The CME's Daily Delivery Report showed that 253 gold and 141 silver contracts were posted for delivery within the Comex-approved depositories on Wednesday. In gold, Canada's Scotiabank was the short/issuer on all 253 contracts---and HSBC USA and Barclays were the largest long/stoppers with 162 and 58 contracts respectively. In silver, there were only two short/issuers---ABN Amro with 93 contracts---and JPMorgan Chase out of it's in-house [proprietary] trading account with 48 contracts. Canada's Scotiabank stopped 131 of the 141 contracts. Scotiabank which, in my opinion is the only non-U.S. bank that's massively short silver on the Comex futures market, has been taking delivery of a pretty decent amount recently, but I would guess that's it's a drop in the bucket compared to what their short position really is. The link to yesterday's Issuers and Stoppers Report is here. There were no reported changes in GLD yesterday. However, there was a fairly chunky deposit into SLV, as an authorized participant added 2,129,673 troy ounces. The U.S. Mint had a sales report yesterday. They sold 2,000 troy ounces of gold eagles---3,000 one-ounce 24K gold buffaloes---and 560,500 silver eagles. There were no changes made to January sales, but I'd bet a fair chunk of dough that the sales reported on Monday actually occurred in January---and were withheld until the new month was underway. Over at the Comex-approved depositories on Friday, they reported a withdrawal of 60,129 troy ounces of gold---and all of it, except for one kilobar---came out of the Scotia Mocatta depository. The link to that activity is here. In silver, there was no silver reported received---and only 111,627 troy ounces were reported removed. The link to that action is here. Nick Laird was quick out out of the blocks with the intraday average price charts for both gold and silver for January, as they were in my in-box early yesterday evening. Except for New Years Day, there were 22 trading days in the month of January---and when you average each 2-minute segment of every one of those 22 days, you get charts that look like the ones below. The highs in gold came during the Far East trading session---no surprises there---but notice what happened to the price two hours before the London open. That's when the price management scheme manifests itself every day, on average----and all of those gains, and more, have disappeared by the low of the day which came minutes after 9 a.m. GMT in London. After that, the gold price rallied but, on average, never rallied higher than the high ticks in the Far East. This is the Anglo/American price management scheme in action. You'll note that the sell-off in silver by JPMorgan et al began at precisely the same time, on average, every day during the month of January---and that was a couple of hours before the London open as well. We've seen this pattern on the daily charts as well---and I've pointed that out on several occasions during the month. The low for silver comes at the same time as gold---minutes after 9 a.m. GMT. However, the selling pressure on silver never let up---and the high for the day, on average, came exactly one hour after the noon GMT London silver fix was in---and the selling pressure continued all through the Comex trading session in New York after that. As Ted Butler has pointed out on several occasions, "day boyz" went out of their way to make the silver price action look lousy compared to gold during January---and their efforts were an unqualified success. The other thing I noticed about the price structure in both gold and silver was that the a.m. and p.m. London gold fixes hardly register on these two charts, although the New York high in gold during January came at the London p.m. gold fix at 10 a.m. EST. Using yesterday's price action in gold as a proxy, it's easy to see why, as JPMorgan et al are always there to make sure that any short covering rally that develops after the "fix is in" is hammered the moment it occurs. Since this is my Tuesday column, I have a lot more stories than usual---and since there are so many, I'll happily leave the final edit up to you.