Friday, May 23: Today in Gold and Silver
NEW YORK ( TheStreet) -- The gold price traded pretty flat in Far East trading on their Thursday---and began to develop a positive bias around 1 p.m. Hong Kong time. From there it rallied slowly but steadily until the 8:20 a.m. EDT New York open---and you don't need me, or anyone else for that matter, telling you what happened next---as you've seen that movie before plenty of times. By the time that JPMorgan et al were done at 11:30 a.m.---all the London and New York gains had vanished into thin air---and from that point on, the gold price traded flat into the 5:15 p.m. electronic close.
The CME Group recorded the low and high ticks as $1,290.10 and $1,304.10 in the June contract.
The gold price finished the Thursday session in New York at $1,293.70 spot, up $1.80 from Wednesday's close. Net volume was 102,000 contracts.It was precisely the same chart pattern in silver---and that's all I need to say about that. The low and high ticks were reported as $19.36 and $19.825 in the July contract. Silver finished the Thursday session at $19.485 spot, up a whole 10 cents from Wednesday. Volume, net of May and June, was a very hefty 43,500 contracts, of which 7,500 was in the September and December delivery months once again. As I keep saying, it seems way too early for July contract holders to be rolling out of their positions, but you just never know---and as I've also said, all those contracts could be one leg of spread trade. Regardless of what they are, volume yesterday was pretty big. The rallies in platinum and palladium didn't really get started until around 11 a.m. BST in London trading, but they to ran into the same sellers of last resort shortly after the Comex open. Although their respective prices were capped, at least they held onto a decent portion of those gains---and weren't sold down hard like their gold and silver brethren. Here are the charts. As you've already figured out for yourself, the closing prices of all four precious metals would be have been past the orbit of Jupiter if "da boyz" hadn't been stepped in---as the panic short-covering rally that would have commenced at some point, would have finished the job. The only thing left to be done once the smoke cleared after that, would be to make note of which short sellers were forced into bankruptcy attempting to make margin calls, or cover short positions in a "no ask" market---like what happened to Bear Stearns. The dollar index closed late on Wednesday afternoon in New York at 80.07---and then spent all of Thursday chopping very quietly higher. It finished the day at 80.22---up 15 basis points on the day. The gold stocks opened up about a percent, but that didn't last long---and by the end of the day they were back in the red---and the HUI closed down 0.07%---about what it gained on Wednesday. It was almost an identical price pattern with the silver equities---and Nick Laird's Intraday Silver Sentiment Index closed down another 0.42%. The CME Daily Delivery Report didn't show much, as there were zero gold and 6 silver contracts posted for delivery within the Comex-approved depositories on Monday. And yes, JPMorgan was the long/stopper on all six contracts. The link to yesterday's Issuers and Stoppers Report is here. There were no reported changes in GLD---and as of 9:52 p.m. yesterday evening, there were no reported changes in SLV, either. Joshua Gibbons, the " Guru of the SLV Bar List", updated his website with the goings-on within SLV during the reporting week---and here is what he had to say: " Analysis of the 21 May 2014 bar list, and comparison to the previous week's list. No bars were added, removed, or had a serial number change. As of the time that the bar list was produced, it was overallocated 234.2 oz. A withdrawal of 1,152,782.4 oz on Wednesday is not reflected on the bar list." The link to Joshua's website is here. There was no sales report from the U.S. Mint once again. Over at the Comex-approved depositories on Wednesday, there was no in/out movement in gold. But it was much busier in silver, of course, as 606,473 troy ounces were reported received---and 673,568 troy ounces were shipped out. The link to that activity is here. I have a very decent number of stories for you again today---and I hope you can find time to wade through the ones you like.
¤ The WrapThe 320 million oz concentrated silver short position is 36% of all the visible silver bullion in the world’s total ETFs and exchange inventories (875 million oz) and 40% of total annual mine production (800 million oz). Can you imagine the outrage that would erupt in any market, say the stock market, if prices were down 40% and there existed eight traders (7 unidentified) holding a short position equal to 36% of total stocks in existence? And if JPMorgan was the identified king stock short, would it be swept under the rug? While it’s clear that the regulators won’t intercede and break up the illegitimate concentrated short position in COMEX silver, neither can they make it easily go away. And it appears that the 8 big shorts can’t make it go away either, or at least they haven’t until now. Not only can’t the massive short position be explained in terms of hedging legitimacy, it also can’t be explained in legitimate economic terms. - Silver analyst Ted Butler: 21 May 2014 I don't think that I need to add anything further to my prior discussion on Thursday's price activity, as the charts pretty much speak for themselves---and I said all that was necessary about it at the top of this column. Here are the 6-month charts for both gold and silver once again with Thursday's data added. JPMorgan et al are still keeping the gold price below its 50-day moving average---and silver, which broke above its 50-day moving average on its spike high at the New York open, closed a hair above its 20-day moving average. The London open is less than five minutes away as I type this paragraph---and the gold price did absolutely nothing in Far East trading on their Friday. The same goes for silver. Volumes are vanishingly small in both metals. Gold's net volume is a hair under 8,000 contracts---and silver's volume is 3,500 contracts. Both platinum and palladium got sold down a bit during Far East trading---and platinum is still down at the London open, but palladium is back to unchanged. The dollar index is basically unchanged from its New York close on Thursday afternoon EDT. Today we get the new Commitment of Traders Report for positions held at the close of Comex trading on Tuesday, May 20. As I said earlier this week, the price action suggests we should see further improvement in the Commercial net short positions in both gold and silver---but I also said [out of the other side of my mouth] that I reserved the right to be wrong. I'll find out at 3:30 p.m. EDT this afternoon---and I'll have all of it for you tomorrow. I was looking at the CME's Preliminary Report on the Thursday trading action---and I note that there are about 127,000 gold contracts still open in June. All of those have to be sold or rolled by the end of Comex trading next Thursday---and those that aren't, will be standing for delivery in the June delivery month. Based on that, we'll see some really decent roll-over/trading volume during the next five business days. And as I hit the send button on today's column at 5:05 a.m. EDT, I note that selling pressure has shown up in all four precious metals---and all are below their Thursday closing prices in New York. Gold volume is now up over 50% from the open, but still very light for this time of day---and about the same can be said for silver's volume. So based on volume alone, I'm not prepared to read much into the current price move, regardless of direction. The dollar index, which had been ruler flat up until the London open, is now up 19 basis points, so I'd guess that the precious metal prices moves at the moment are a result of that, at least that's what will be given as the reason by the main stream media if these trends continue. Since today is Friday, I haven't any idea as to how the trading action will unfold in New York. Will "da boyz" take off for The Hamptons early, or will there be some fireworks of some kind? Beats me, but we won't have long to wait to find out. Before heading out the door, I'd like to remind you once again that Casey Research has a limited-time offer [it ends at midnight EDT on Monday] on their Casey Extraordinary Technology subscription service. Alex Daley is all pumped up about the successes they've had over the last year, with an average return of 47%. The commentary is rather provocatively headlined " Gold is Dead: Long Live Tech". It costs nothing to check it out, which I urge you to do when you have a spare minute. The link is here---and Casey Research is now providing a 6-month guarantee of customer satisfaction with this offer. I hope you enjoy your weekend, or what's left of it if you live west of the International Date Line---and I'll see you here tomorrow.
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