Tuesday, September 24: Today in Gold and Silver

NEW YORK ( TheStreet) -- The gold price opened flat in New York on Sunday night and then didn't do much until 9 a.m. in Hong Kong when a not-for-profit seller took gold down about fifteen bucks in just a few second.  The price struggled back after that, but could never made it above the $1,330 spot price mark before getting sold down.

Gold closed at $1,322.30 spot, down $3.30 from Friday's close.  Gold's net volume on the day was 144,000 contracts, with 35,000 of that coming before the London open, so you can see that trading was very active in the Far East on their Monday.

Silver ran into the same 9 a.m. Hong Kong seller as gold did, but by 10:30 a.m. in New York, the price had struggle back to slightly above unchanged from Friday's close, but once electronic trading began, it got sold down for a small loss on the day.

Silver finished the Monday session at $21.64 spot, down 16 cents from Friday.  Net volume was very decent at 46,500 contracts and, like gold, 15,000 of those contracts traded before the London open.  That's a lot of contracts in both metals for that time of day.

Both platinum and palladium had mini spikes down at 9 a.m. Hong Kong time as well.  Platinum rallied back until just before the London open before getting quietly sold down for the rest of the day.  Palladium traded pretty flat until around 11:30 a.m. BST in London and then gold sold down a bit over ten bucks by 9:30 a.m. in New York.  From there it recovered but, like the other three precious metals, it wasn't allowed to close in positive territory, either.  Here are the charts.

The dollar index closed in New York on Friday at 80.44.  It hit its low of the Monday session [80.29] minutes after 2 p.m. in Hong Kong, and then chopped back to basically unchanged into the close, as it finished at 80.45.  Nothing to see here.

The gold stocks managed to keep their heads above water until the gold price began to sell off shortly after the 1:30 p.m. EDT Comex close, and the shares followed.  The HUI closed down 1.57%, virtually on its low of the day.

The silver stock headed south even earlier than the gold stocks, and Nick Laird's Intraday Silver Sentiment Index closed down 2.82%.  A lot of the silver miners did much worse than that.  The silver equities, like their golden brethren, have now given back all their gains from last Wednesday.

The CME's Daily Delivery Report for Monday showed that zero gold and 80 silver contracts were posted for delivery within the Comex-approved depositories on Wednesday.  There were seven short/issuers, with the biggest being ABN Amro with 47 contracts.  The three largest stoppers were Canada's Bank of Nova Scotia with 32 contracts, followed by JPMorgan Chase with 28 contracts in its in-house [proprietary] trading account, and 14 in its client account.  The link to yesterday's Issuers and Stoppers Report is here.

There was another withdrawal from from GLD yesterday, as an authorized participant took out 19,309 troy ounces.  And as of 10:01 p.m. yesterday evening, there were no reported changes in SLV.

Since yesterday was Monday, the U.S. Mint had a sales report.  They sold 3,000 ounces of gold eagles; 3,500 one-ounce 24K gold buffaloes; and 710,500 silver eagles.

There wasn't much in/out movement in gold within the Comex-approved depositories on Friday.  They reported receiving 5,353 troy ounces of the stuff, and shipped 385 troy ounces out the door.  The link to that activity is here.

As usual, there was a lot more activity in silver.  They reported receiving 500,272 troy ounces, and 138,665 troy ounces were shipped off to parts unknown.  The link to that action is here.

Since today is Tuesday, I have a few more stories than normal, so I hope you're able to find the time to read the ones that interest you the most.

¤ The Wrap

I’m not a Fed-Head because whatever they do is not specific to silver and gold, but applies to asset values in general. I’m more interested in the things most specific to silver and gold. As is usually the case, what moved silver and gold violently this [past] week was not the Fed, in my opinion, but factors much more specific, namely, the illegal trading practices on the COMEX. In fact, it’s hard for me to comprehend how anyone paying close attention could fail to see the obvious explanation for the week’s volatility in silver and gold – JPMorgan and other collusive commercials rigging prices on the COMEX for their own benefit. - Silver analyst Ted Butler: 21 September 2013

Except for the 9 a.m. appearance of the high-frequency traders in Hong Kong, it was pretty quiet during the rest of the trading day both in Europe and in New York on Monday.  I also noted that all four precious metals got sold down for small loses during electronic trading after the Comex had closed for the day.

Nothing will happen price-wise until JPMorgan and the raptors [the Commercial traders other than the Big 8] stop doing what they're doing.  The gold and silver pundits out there can predict rallies until the cows come home, but until the above-mentioned players stop gaming the system, either for profit or on Fed/BIS orders, or both, nothing will come of it.

These guys can step into the market any time they wish, and as you can tell from the price action since the low back at the end of June, that's precisely what they've been doing, andand it's visible for all to see, unless they're willfully blind, that is.

Today, at the 1:30 p.m. EDT close of Comex trading, is the cut-off for this Friday's Commitment of Traders Report.  If the Tuesday trading session comes and goes with little price action [at least to the upside] then we should get a very clear picture of what happened on Wednesday and Friday of last week, the big up/down days following the Fed announcement.

All four precious metals traded marginally higher during most of the Far East trading day on their Thursday, and silver managed to spike above $22 for a minute or so.  However, shortly before 2 p.m. Hong Kong time, all four came under high-frequency trading selling pressure, and now prices are back to around their Monday closes in New York.  Volumes were very decent in Far East trading, but not anywhere near as high as they were on Monday at this time, but still pretty chunky nonetheless.  The dollar index is chopping sideways, and is basically unchanged as of 3:42 a.m. EDT.

And as I hit the send button on today's column at 5:20 a.m. EDT, all four precious metals are still under pressure from the HFT crowd, with silver leading the way.  At the moment it's down more than 60 cents from its high earlier in the day in Hong Kong.

Volumes are way up as well.  In gold, volume is just over 43,000 contracts, and silver's volume is now at 14,000 contracts, which are almost the same as the volumes at this time of day on Monday.  The dollar index has spiked up a whole 9 basis points.

It could be an interesting day during the New York trading session, so nothing will surprise me when I switch my computer on later this morning.

That's all I have for today, and I'll see you here tomorrow.

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


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