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TheStreet Open House

Wednesday, May 14: Today in Gold and Silver

NEW YORK ( TheStreet) -- Well, it was more or less the same price story on Tuesday as it was on Monday, as the rally that began 10 minutes after the Comex open ran into the usual seller of last resort---but this time the gold price didn't get a change to either break $1,300 or the 200-day moving average, as the price was stopped cold before either event could occur.  It was also another day where the low and high ticks aren't worth looking up.

Gold closed in New York on Tuesday at $1,294.70 spot, down $1.00 from Monday's close.  Net volume was pretty light at only 89,000 contracts with more than a third of that occurring by about 9 a.m. BST in London.

I shan't repeat myself by discussing the silver price chart from yesterday---as it, too, looks almost identical to its counterpart on Monday.  It barely broke above its 20-day moving average on Tuesday.  The high and low aren't worth looking up, either---as silver traded in a two bit price range for the entire day.

Silver closed yesterday at $19.53 spot, up the magnificent sum of 3 cents---courtesy of JPMorgan et al.  Volume, net of May and June, was only 29,500 contracts---which was considerably less than the 45,000 contract volume on Monday.

Platinum and palladium did better, but some of their nice gains got shaved off starting the moment that Zurich closed for day, which was noon in New York.  Here are the charts.

The dollar index closed late Monday afternoon in New York at 79.88---and from there it didn't do much of anything until shortly after 9:30 a.m. BST in London.  By the time the subsequent rally was done for the day, the dollar index was up to 80.17 by 1:30 p.m. EDT---which just happened to be the Comex close in New York.  After that it drifted down a handful of basis points, finishing the Tuesday trading session at 80.12---up 24 basis points from Monday's close.

The gold stocks struggled to stay in positive territory, but finally gave up the ghost about 10:15 a.m. in New York---and slid into the red for the rest of the day.  The HUI finished down 0.68%.

The silver stocks posted some decent gains by 11 a.m. EDT but, like gold, couldn't hold onto them.  But they managed to finish in the black, as Nick Laird's Intraday Silver Sentiment Index closed up 0.49%.

The CME Daily Delivery Report showed that 7 gold and 85 silver contracts were posted for delivery within the Comex-approved depositories on Thursday.  JPMorgan stopped all 7 gold contracts offered by Canada's Scotiabank.  In silver it was Newedge USA and ABN Amro as the two short/issuers of note with 60 and 18 contracts respectively.  There were nine different long/stoppers, most of whom were "the usual suspects."  The link to yesterday's Issuers and Stoppers Report is here.

There were no reported changes in GLD yesterday---and as of 9:47 p.m. EDT yesterday evening, there were no reported changed in SLV, either.

The good folks over at Switzerland's Zürcher Kantonalbank updated their website for both their gold and silver ETFs as of the end of business on Friday, May 9.  They reported that their gold ETF declined by another 23,633 troy ounces---and their silver ETF declined by a further 34,314 troy ounces.

Well, the U.S. Mint made up for its lack of a sales report on Monday, with a big one on Tuesday.  They sold 5,500 troy ounces of gold eagles---3,500 one-ounce 24K gold buffaloes---100 platinum eagles---and an absolutely stunning 1,939,500 silver eagles.  Once again I [along with Ted Butler] ask the question:  "Who the #%$& is buying all these things, especially the silver eagles?"---because it sure as hell isn't the general public, as retail bullion sales are the pits.

Over at the Comex-approved depositories on Monday, there was very little action in gold, as only 3 kilobars were shipped out---all from HSBC USA.  The link to that activity, if you wish to dignify it with that description, is here.

There was more activity in silver, as 300,106 troy ounces were reported received---and a smallish 5,123 troy ounces were shipped out.  The link to that action is here.

I have a decent number of stories again today---and I hope you find something of interest in here.

¤ The Wrap

As for the signs of increased physical demand, the turnover or movement of metal into and out from the COMEX-approved silver warehouses continues to astound me. This [past] week, some 4.6 million oz were physically deposited into or physically removed from the various warehouses, an annualized rate of more than 230 million oz. For the first time in six weeks, total inventories increased by 1.8 million oz, to 174.9 million oz, although total inventories matter little. - Silver analyst Ted Butler: 10 May 2014

It was sort of like Bill Murray's Groundhog Day---as Tuesday was the same as Monday.  Nothing to see here, folks---please move along.

Here are the 6-month gold and silver charts once again---and the 200-day moving average in gold remains unviolated---and the the silver price is pennies above its 20-day moving average.

Since yesterday [at the close of Comex trading] was the cut-off for Friday's Commitment of Traders Report, just eye-balling both charts, it's hard to say what the internal changes might be within the structure of that report, as there weren't big changes in overall prices during the reporting week in either metal.  So nothing will surprise me when I see it.

With 25 minutes to go before the London open, there has been very little price activity in either gold, silver or palladium.  However, platinum is up about eight bucks the ounce at the moment.  Volume is the lightest I can ever remember at this time of day, even lighter than between Christmas and New Years.  Net gold volume is barely over 11,000 contracts---and silver's volume is a hair over 2,500 contracts.  The dollar index is back down to the 80.00 mark---and it looks like it wants to head lower.  Will there be someone there to catch that particular falling knife [again] if it happens?

And as I prepare to send today's column off to Stowe, Vermont at 4:45 a.m. EDT---I note that there was some price activity in all four precious metals starting at, or just after, the London open.  Of course none of these rallies was allowed to get far, as "da boyz" were out in force to go short, or sell longs to all comers for fun, profit---and price management purposes.  Not surprisingly, volumes in both gold and silver have blow way out.  Net gold volume is more than double what it was [23,000 contracts] now that London has been open for 90 minutes---and silver's volume is north of 6,600 contracts.  So JPMorgan et al had throw a lot of Comex paper into these rallies to put them out---and as of 4:32 a.m. EDT, they seem to have succeeded, at least for the moment.  The dollar index is still hanging on to the 80.00 mark by its proverbial fingernails.

That's all for today---and I'll be more than interested in what is happening during the New York trading session when I roll out of bed later this morning.

See you tomorrow.

This is an abbreviated version of Ed Steer's Gold & Silver Daily Sign-up to have to the complete market review delivered to your email inbox each morning for free.

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