Saturday, August 23: Today in Gold and Silver
NEW YORK ( TheStreet) -- Friday was a real yawner as far as price action in gold was concerned and, once again there was little volume associated with it, either---and it followed the dollar index around for the most part. Once again, the high and low ticks aren't worth looking up.
Gold finished the Friday trading session at $1,280.80 spot, up $4.50 from Thursday's close, saved by a five dollar rally that started just before 11 a.m. EDT in New York. Net volume was only 87,000 contracts.
Silver spent most of Friday in positive territory but, like gold, got sold down to its low of the day a few minutes before London closed for the weekend, which was a few minutes before 11 a.m. EDT. The subsequent rally back into positive territory got met by the usual not-for-profit sellers---and silver was closed down on the day. The low and high ticks were reported as $19.285 and $19.55 in the September contract. Silver closed yesterday at $19.395 spot, down 2 cents from Thursday. Gross volume was heavy because of roll-overs out of the September contract, but it netted out at only 22,000 contracts. The platinum price did even less---and finished Friday up two bucks. Palladium was in positive territory all day long yesterday---and then caught a bid at the Comex open, with all of the gains in by 10 a.m. EDT. After that it traded flat, before getting sold off a couple of bucks just before the close of electronic trading. Palladium finished up seven dollars. The dollar index closed late Thursday afternoon in New York at 82.16. It trade pretty flat in the early going in Far East trading before rolling over and hitting its 82.07 low about 2:40 p.m. Hong Kong time. It rallied from there, hitting its 82.45 high minutes before 11 a.m. EDT, which just happened to coincide with the low ticks for both gold and silver. From that point it sold off a bit and closed the Friday session at 82.31---up 15 basis points on the day. The gold stocks headed lower right from the open---and hit their nadir minutes before 11 a.m. EDT when gold hit its low---and the dollar index hit its high. From there they rallied sharply back into positive territory, but couldn't hold even those tiny gains, despite the fact that gold closed in positive territory. The HUI finished down 0.30%. The silver equities followed a very similar path---and Nick Laird's Intraday Silver Sentiment Index closed down 0.27%. The CME Daily Delivery Report showed that 100 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Tuesday. The only short/issuer was Morgan Stanley out of its in-house [proprietary] trading account. The two largest stoppers were Canada's Scotiabank with 71 contracts---and JPMorgan with 22 contracts for its client account once again. The link to yesterday's Issuers and Stoppers Report is here. The CME's Preliminary Report for the Friday trading session showed that there are still 226 gold contracts open in August, from which you can subtract the 100 contracts shown above that are to be delivered on Tuesday. There were no reported changes in GLD yesterday---and as of 9:36 p.m. yesterday evening, there were no reported changes in SLV, either. And, for the first time this week, there was no sales report from the U.S. Mint. Over at the Comex-approved depositories on Thursday, there was a deposit of 46,279 troy ounces of gold into Brink's Inc. Ted Butler pointed out that this was the same gold, to the ounce, that had been transferred out of the Manfra, Tordella & Brookes warehouse on Wednesday. So there was no net change in gold stocks over those two days, just inter-depository movement. The link to that activity is here. It was a huge day in silver once again, as 1,899,945 troy ounces were reported received---and 785,557 troy ounces were shipped out. The bulk of the movements were at Brink's, Inc. and Canada's Scotiabank. The link to that action is here. The Commitment of Traders Report, for positions held at the close of Comex trading on Tuesday, was more or less what I was expecting to see, as there was very decent improvement in the Commercial net short positions in both silver and gold---and I'm just going to hit the highlights. In silver, the Commercial net short position declined by a chunky 6,343 contracts, or 31.7 million ounces. The Commercial net short position is now down to 186.9 million troy ounces. The Big 4 traders reduced their net short position by 1,800 contracts, but the '5 through 8' traders increased their net short position by 1,500 contracts. Ted pegs JPMorgan's short-side corner in the Comex silver market at 17,500 contracts. The big surprise for me was that the brain-dead/black-box technical fund traders in the 'Managed Money' category only reduced their long position by 575 contracts, although they jumped on the short side to the tune of 5,411 contracts. I was expecting much more long liquidation that that. Ted had the answer---and it amazed me---but that info is for his paying subscribers only. As an aside to all of the above in silver, at the low at the end of May, the Commercial net short position in silver was only around 14,000 contracts, or 70 million ounces of silver. So you can see that we have miles to go to the downside in both contract [and price] terms if 'da boyz' really want to hammer the silver market like their quite capable of doing. In gold, the Commercial net short position also declined by a bunch, to the tune of 13,025 Comex contracts, or 1.30 million troy ounces of paper gold. The 'Managed Money' technical funds did pretty much as I expected they might, as they sold 9,959 long contracts---and piled onto the short side to the tune of 3,263 contracts. Ted says that JPMorgan actually increased its long potion by 2,500 contracts during the reporting week---and their long-side corner in the Comex gold market is back up to 17,500 contracts, which is exactly the same number of contracts they hold short in the Comex silver market. Here's Nick Laird's " Days of World Production to Cover Comex Short Positions" for the Big 4 and Big 8 traders in the Comex futures market as of yesterday's COT Report. I have a lot of stories today, including several that I've been saving for my Saturday column because of content or length issues.
¤ The WrapI’ve been mentioning COMEX copper more frequently this year because it has become quite clear that copper prices have been involved in the same manipulative scam as is true in COMEX silver and gold. It’s the same story in copper that exists in silver and gold, namely a rigging of prices by the commercials to induce technical fund buying and selling. Copper price movement has had nothing to do with real world copper supply and demand fundamentals and everything to do with the collusive commercials tricking the technical funds in COMEX dealings. Clearly, all blame for this outrageous and illegal copper manipulation must be placed on the CME and the CFTC (and probably JPMorgan). What makes the copper manipulation particularly egregious is that the market is so large, with annual mine production worth upwards of $130 billion, and because it wouldn’t seem probable that the manipulation exists for some of the reasons given for the silver and gold manipulations, namely to protect the dollar or some such effect. Thus, it would appear likely that it’s just a game of the collusive commercials stealing from the technical funds for pure avarice, promoted by the CME and protected by the CFTC. The scam is as simple and straight forward in copper as it is in silver and gold, namely, the commercials rig prices higher and lower through important moving averages to sucker the technical funds in and out of massive positions. - Silver analyst Ted Butler: 20 August 2014 Today's pop 'blast from the past' dates back to 1968. Both the tune---and the artist---need no inroduction at all. The link is here. If I've posted this before, it's been a while. Today's classical 'blast from the past' is the waltz form Act 1 of Tchaikovsy's 1875/6 ballet, Swan Lake, Op. 20. The Philadelphia Orchestra does the honours---and Riccardo Muti conducts. The tempo is a little faster than I'm used to, or like, but I'm running late this morning---and I just don't have the time to look for another version. The link is here. There's not much to talk about regarding yesterday's price action in either gold or silver. It was almost like JPMorgan et al decided to take the day off. Except for roll-over action, volume wasn't particularly high once again. Here are the 6-month charts for both gold and silver---and there's not much change from Thursday. As I said in Friday's wrap, it's still my opinion that gold and silver prices haven't seen their lows for this move down as of yet. That was confirmed in my conversation with Ted Butler yesterday. I asked him how far along we were in the silver liquidation process---and his answer was not encouraging. He said that as of yesterday's Commitment of Traders Report, the technical funds were still 23,000 Comex contracts higher than we were at the absolute low at the end of May. To get back to the contract low at the end of May, these long contracts would have to disappear---and that could happen in two ways, which is a combination of long liquidation and new shorting that add up to that number of contracts. What the silver price would be at that point is anyone's guess, but it would be considerably lower than it is right now. The same situation exists in gold, although I'm not sure of the number of contracts, because I didn't ask. Maybe Ted will mention it in his weekly review which will be posted for his paying subscribers later today. Of course, there's always the chance that JPMorgan et al aren't going to target those lows again during this particular engineered price decline, but the possibility exists, so I thought you should know about it. Nothing has changed in the economic, financial or political world since last Saturday. The American and European militaries---and their associated governments---are still attempting to provoke Russia into armed intervention in the Ukraine. Of course Putin is way too smart for that. Since the lies they---and the whores in the Western press---are telling, are no longer working, we'll just have to wait and see what happens, because the West will continue to hammer away at the Russians, as they are still itching for war. All we can do is wait for the next shoe to drop. I'm thinking a 'false flag' operation of some kind. Of course the powers-that-be could also drop another 9/11-type event on us sometime in the future---and as I said in the comments in one of the Critical Reads---there will probably be several simultaneously in various parts of the world, as the forces of Mordor, along with the bought and paid for press, are now becoming more brazen with each passing day, as the Nazgûl have been given free rein on Planet Earth. There are four trading days left in August---and I'm not sure what to expect. One would think that JPMorgan et al will push their advantage through options and futures expiry early next week, as that's what I would be doing if I were them. But they were nowhere to be seen yesterday. However, I don't have a criminal mind---and who knows what they've been instructed to do. Because even though they're doing the dirty work, it's my opinion that they aren't calling the shots. So we'll have to see what next week's trading action brings---and I'll be watching the 6 p.m. EDT Globex open on Sunday evening with great interest. Enjoy what's left of your weekend---and I'll see you on Tuesday.
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