NEW YORK ( TheStreet) -- The gold price showed signs of life in early morning trading in the Far East on their Tuesday---and was up more than ten bucks by around 12:45 p.m. Hong Kong time. Then about an hour and a half after that, the price looked like it was about to run away to the upside until JPMorgan et al showed up with their HFT algorithms and, as I mentioned in The Wrap on Tuesday, the high of the day was in at the London open. And except for a capped rally at the Comex open, the gold price slid down hill for the remainder of the day.
The low and high ticks were recorded as $1,275.70 and $1,291.90 in the December contract.
Gold closed on Tuesday in New York at $1,280.60 spot, up only $4.40 on the day after "da boyz" got through with it. Net volume was 97,000 contracts, which wasn't overly heavy, but a good chunk of that was used to put out the rally fires at the London and New York opens.Silver followed a similar path to gold, but the rally at the London open was much more anemic, with the real fireworks starting shortly before 1 p.m. BST---and within ten minutes of the Comex open, JPMorgan et al had capped the price and, like gold, it was all down hill from there. The low and high ticks in silver were reported by the CME Group as $19.305 and $19.66 in the September contract. Silver closed yesterday at $19.355 spot, up 1 cent from Monday. Only the willfully blind wouldn't admit the price management that was self evident in the silver market yesterday. One wonders how much more egregious it can get before they do. Platinum and palladium both had rally attempts at the London and New York opens---and they, too, got dealt with in a similar fashion. Both finished down on the day---platinum by 6 bucks and palladium by five. Here are the charts. The dollar index closed late on Monday afternoon in New York at 82.58---and then chopped around in a 25 basis point range for the entire Tuesday trading session. The 80.45 low came at 2:30 p.m. Hong Kong time---and the 82.69 high came around 2:40 p.m. in New York. It closed at 82.67---up 9 basis points on the day. Here's the 3-day chart so you can see the action. The gold stocks gapped up a percent and change at the open---and then began to work their way higher starting around 10 p.m. EDT. Then from 3 p.m. onward, they traded flat. The HUI finished up 2.28%. The silver equities had a very similar price path as the gold stocks---and Nick Laird's Intraday Silver Sentiment Index closed up 2.45%. I was rather amazed to see the gold and silver equities rise for most of the trading session, while the underlying metals headed south at the same time. The CME Daily Delivery Report showed that 46 gold and 1 silver contract were posted for delivery within the Comex-approved depositories on Thursday. Morgan Stanley and ABN Amro issued---and HSBC USA and Scotiabank stopped. The link to yesterday's Issuers and Stopper Report is here. The CME Preliminary Report for Tuesday's trading action showed that only 55 gold and 2 silver contracts are left for delivery in the August contract---and after you subtract the deliveries mentioned in the previous paragraph, the August delivery month is pretty much done. There was another withdrawal from GLD yesterday. This time it was 48,097 troy ounces. And as of 9:57 p.m. EDT yesterday evening, there were no reported changes in SLV. The good folks over at Switzerland's Zürcher Kantonalbank updated their gold and silver ETF holdings as of the close of business on Friday, August 22. Their gold ETF declined by 12,475 troy ounces---and their silver ETF shed 96,838 troy ounces. The good folks over at the shortsqueeze.com Internet site updated their short position data for both SLV and GLD [as of the July 15 cut-off] late last night. Their new report showed that the short position in SLV declined by 8.97 percent---from 17.37 million shares/troy ounces, down to 15.81 million shares/troy ounces. I was expecting/hoping for more than that, but the numbers are what they are---and that's if all the deposits made during the reporting period were included. There should be another big decline in the next report in two weeks from now, as 4.5 million ounces of silver have been reported added to SLV since the July 15 cut-off. The short position in GLD went the other direction, increasing by 16.95 percent, from 1.15 million troy ounces, up to 1.35 million troy ounces. This increase was probably of the 'plain vanilla' variety. Regardless, the short position in GLD remains very low on an historic basis. The U.S. Mint had another sales report yesterday. They sold 3,500 troy ounces of gold eagles---1,000 one-ounce 24K gold buffaloes---and 105,000 silver eagles. It was very quiet in gold over at the Comex-approved depositories on Monday, as nothing was reported received---and only 321 troy ounces were shipped out. Of course it was an entirely different kettle of fish for silver, as 890,790 troy ounces were reported received---and 600,040 troy ounces were reported shipped out. The link to that action is here. At the moment, I have a lot less stories for you than I did on Tuesday. However, that could change as the evening progresses.