Friday, September 27: Today in Gold and Silver

NEW YORK ( TheStreet) -- As I mentioned in The Wrap in yesterday's column, gold and silver didn't do much in Far East trading on their Thursday, but moments after the London open, the price spiked up about ten bucks or so, and that rally got met with mega-selling by a not-for-profit seller.  Gold volume doubled in two hours.

From that point, gold traded more or less flat into the Comex open, and the rest as they say, is history, with the big sell off coming at, or shortly after, the London p.m. gold fix was in at 10 a.m. EDT.  The New York low was recorded by Kitco as $1,318.60 spot, and that came shortly after 12 o'clock noon EDT.  The price recovered a few dollars into the close.

Gold finished the Thursday session at $1,323.80 spot, down $9.30 from Wednesday.  Net volume was close to 167,000 contracts, with about 35,000 of that coming before the London a.m. gold fix.

Here's the New York Spot Gold [Bid] chart on its own.

Silver sold off a bit as the trading day wore on in Hong Kong yesterday, and the rally over the $22 price mark got squashed the moment that the noon silver fix was in, in London.  From there, the price got sold down to $21.75 spot by 10:25 a.m. EDT, and then didn't do much for the remainder of the day.  The low tick came on a spike down that occurred right at 3:30 p.m. EDT in electronic trading.

Silver closed at $21.725 spot, which was down 7 cents from Wednesday.  Net volume was 39,000 contracts, with 25% of that amount traded before 10:30 a.m. BST in London.

Here's the New York Spot Silver [Bid] chart on its own, so you can see the details.

Both platinum and palladium started off in positive territory, but both ran into selling pressure around noon in London, just as silver did.  And as the charts show, platinum got sold down a lot harder than palladium.

The dollar index closed at 80.345 late on Wednesday afternoon in New York.  From there it didn't do a lot until just after 8:30 a.m. in London on their Thursday morning, about thirty minutes after the gold and silver rallies were underway, then it chopped steadily higher, reaching its zenith of 80.63 just minutes after 12 o'clock noon in New York, which was around gold's low of the day.  From there it sold off a bit into the close.  The index finished the Thursday session at 80.53, which was up a bit under 20 basis points, but still trading in that same tight range that it's been doing for over a week now.

The gold stock opened in the green, and held in there until the big sell-off after the London p.m. gold fix.  Then it was all down hill from that point, but they popped a bit in the last forty-five minutes of trading, trimming their loses on the day.  The HUI finished down 1.42%.

The silver stocks got smacked as well, and Nick Laird's Intraday Silver Sentiment Index closed down 2.22%.

The CME's Daily Delivery Report showed that 42 gold and 6 silver contracts were posted for delivery within the Comex-approved depositories on Monday.  In gold, all 42 contracts were issued by JPMorgan out of its client account, and all were stopped by either HSBC USA, Canada's Scotiabank, or JPMorgan out of its in-house [proprietary] trading account.  The link to yesterday's Issuers and Stoppers Report is here.

There were no reported in/out movements in either GLD or SLV yesterday, and there was no sales report from the U.S. Mint for the second day running.

While on the subject of the SLV, Joshua Gibbons, the "Guru of the SLV Bar List", updated his website with SLV's latest inventory changes for the reporting wee just past; and this, in part, is what he had to say: "Analysis of the 25 September 2013 bar list, and comparison to the previous week's list: 4,152,038.5 troy ounces were added (all to Brinks London), and no bars were removed or had a serial number change."

"The bars added were from: Aurubis AG (1.4M oz.), Krasnoyarsk (0.7M oz.), Solar Applied Materials (0.5M oz.), and 21 others."  The link to Joshua's website is here.

There was no gold moved either in or out of the Comex-approved depositories on Wednesday.  It was a different story in silver, as Canada's Scotiabank reported taking in 1,337,607 troy ounces, and shipped out 601,011 troy ounces for parts unknown.  The link to that action is here.

I have a reasonable number of stories today, and I hope you find some of them of interest.

¤ The Wrap

The course of history shows that as a government grows, liberty decreases. -- Thomas Jefferson

Thursday was just another day when nothing was allowed to happen to the upside, either in London or New York.  It should be obvious that precious metal prices will not be allowed to rise significantly [regardless of fundamental supply/demand considerations] until the powers-that-be, working through the U.S. bullion banks [JPMorgan Chase in particular], allow it.

That should have been apparent with what happened to gold and silver prices last Wednesday on the Fed news, only to be crushed by the not-for-profit sellers on Thursday and Friday.  I get the impression that "da boyz" were sending us all a message.

They can do anything they please as far as prices are concerned, as there is no one to stop them.  But they won't keep it up forever.

Today we get the Commitment of Traders Report for positions held at the close of Comex trading on Tuesday.  I'm hoping it will show improvements in the Commercial net short positions in both metals, but the price action on Wednesday through Friday of last week makes it hard to read in advance.  But whatever the numbers show, I'll have it all in tomorrow's column.

Not much happened in Far East trading on their Friday morning, but three of the four precious metals developed a positive bias in afternoon trading, and are up a bit now that London has been open about twenty minutes.  Volumes are pretty light, about the same as they were on Thursday morning in London before the rallies started.  So far there's no indication that we're going to have repeat performance of what happened yesterday going into the London a.m. gold fix.  And not that it matters, the dollar index is down 10 basis points.

And as I hit the send button on today's column at 5:15 a.m. EDT, all four metals have sold off a hair from their "highs" in London.  Volumes are a bit higher, of course, and the dollar is still down about the same amount as before.  Nothing to see here.

Since today is Friday, I have no idea what the rest of the trading day will look like by the time the markets close in New York later today, so nothing should surprise us.

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.

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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