NEW YORK ( TheStreet) -- All was calm---and volume was microscope---up until 8:45 a.m. EDT on Thursday. Then the gold price blasted higher, most likely on the ECB interest rate news. But within minutes, the sellers of last resort were there with a tsunami of Comex paper to kill the rally stone cold dead---and actually sold it down about eight bucks off its high tick. It's unknown whether it was new long buying, or short covering by the technical funds, but it doesn't matter. All that mattered was that JPMorgan et al prevented what was certain to become a market-clearing event in gold.
The low and high ticks were recorded by the CME Group as $1,241.20 and $1,257.90 in the August contract.
Gold closed in New York yesterday at $1,253.20 spot, up $9.60 from Wednesday's close. Volume, up the to big price spike, had been fumes and vapours, but exploded to 128,000 contracts, net of June and July.It was more or less the same price activity in silver. Volume was nonexistent, but once price volatility began to surface shortly before 1 p.m. BST in London---and then in the subsequent 8:45 a.m. EDT price spike---volume blew out as well, from substantially under 10,000 contracts to north of 40,000 contracts by day's end. The low and high ticks in silver were reported as $18.67 and $19.155 in the July contract. Silver finished the Thursday trading session in New York at $19.035 spot, up 24 cents from Wednesday---and would have obviously done much better if JPMorgan et al hadn't put in an appearance. Net volume, which was around 3,500 contracts at 8:30 a.m. BST in London trading, was 40,500 contracts by the end of electronic trading in New York yesterday---more than double what it was on Wednesday. After getting sold down to its low of the day at 1 p.m. Hong Kong time, the platinum price rallied in fits and starts right into the 5:15 p.m. close in New York yesterday, although most of the gains [such as they were] were posted by 1 p.m. EDT. Platinum only closed up five bucks. Palladium also got sold down a few dollars during Far East trading as well---and didn't mount much in the way of a permanent rally until just before 1 p.m. in Zurich. It then appeared that a willing seller wasn't prepared to allow the price to break above the $838 spot mark in New York trading---and the metal closed up an even five bucks as well. It was another day where it was obvious that all four precious metals wanted to sail away to the upside---and would have done so if not met by determined sellers with very deep pockets. The dollar index finished trading late on Wednesday afternoon in New York at 80.66---and then slid about 10 basis points up until 12:40 a.m. BST in London, or 7:40 a.m. in New York. At the point, the index blasted higher, coming within a couple of basis points of the 81.00 level just minutes after 8:30 a.m. in New York, less than an hour later. Then equally as quickly, the index began to sell off---and most of the selling was done by shortly before 2 p.m. EDT---and the index was down to 80.34. From there it traded more or less flat, closing at 80.36---down 30 basis points from Wednesday. The index was already heading south when gold and silver had their 3-minute spikes. Undoubtedly the dollar index and gold price activity were related to the interest rate news out of Europe, but they didn't happen concurrently. The gold stocks gapped up less than a percent at the open---and then climbed to their high of the day around 12:15 p.m. EDT, before giving part of those gains back as the trading day wore on. The HUI finished up 1.42% The silver equities had a terrific day. Most of the gains were in by 12:15 p.m. as well, but traded flat after that---and Nick Laird's Intraday Silver Sentiment Index closed up 3.31%. The CME Daily Delivery Report showed that 146 gold and 1 silver contract were posted for delivery within the Comex-approved depositories on Monday. In gold, the only short/issuer of note was Barclays, with 143 contracts---and the list of long/stoppers included "all the usual suspects" with the exception of Scotiabank.
The link to yesterday's Issuers and Stoppers Report is here. There were no reported changes in GLD yesterday---and as of 10:05 p.m. EDT yesterday evening, there were no reported changes in SLV, either. But when I checked the iShares.com website at 3:16 a.m. EDT this morning, I noted that an authorized participant had withdrawn 145,074 troy ounces. This may have been a fee payment of some kind. Joshua Gibbons, the " Guru of the SLV Bar List", posted his weekly report on the goings-on within the SLV ETF for the week ending at the close of business on Wednesday---and this is what he had to say--- " Analysis of the 04 June 2014 bar list, and comparison to the previous week's list: 2,401,783.9 troy ounces were added (all to Brinks London). No bars were removed or had a serial number change." " The bars added were from Solar Applied Materials (0.9Moz), Kazakhmys (0.6Moz), Dowa Mining (0.2Moz), and 11 others. As of the time that the bar list was produced, it was overallocated 691.4 oz. All daily changes are reflected on the bar list." " The bars added appear to be freshly minted bars (unlike the older bars removed recently)." And shortly after I filed my column this morning, I received an e-mail from the good folks over at Switzerland's Zürcher Kantonalbank. They had just updated their website with their gold and silver ETF data for the week ending May 30---and this is what they had to report. Their gold ETF shed another 10,435 troy ounces---and their silver ETF declined by 135,580 troy ounces. There was no sales from report from the U.S. Mint. Over at the Comex-approved depositories on Wednesday, there was no in/out gold movement once again---and in silver, there was 91,158 troy ounces reported shipped out. The link to that activity is here. Reader Brad Robertson sent me a couple of charts yesterday. The first one is the 5-minute gold tick chart---and the other is the 5-minute dollar index tick chart. I mentioned at the top of this column that there was microscopic volume in gold yesterday, but that all changed as you can tell from the chart. The same applies to the dollar index.
I have a large number of stories again today---and I hope you find some in here that interest you.