Friday, October 4: Today in Gold and Silver

NEW YORK ( TheStreet) -- It was a nothing day for gold in Far East trading on their Thursday.  Once London opened, the gold price got sold down a bit over ten bucks going into the Comex open, with the subsequent rally moving the price back to up five or six bucks by noon EDT.  From there the price chopped quietly lower into the 5:15 p.m. electronic close.

The highs and lows aren't worth mentioning.

Gold finished the Thursday session in New York at $1,316.70 spot, up a whole 40 cents from Wednesday's close.  Net volume was pretty quiet at around 133,000 contracts.

Silver's price pattern was pretty much the same.  The high tick in New York [$21.96 spot] came minutes before the Comex close, but that rally got sold down the moment it appeared that the price would break through the $22 spot mark.  After that, the silver price also traded quietly lower for the rest of the day.

Silver closed at $21.695 spot, which was down 3.5 cents from Wednesday.  Net volume was an unspectacular 32,000 contracts.

The other two white precious metals did not fare as well.  Platinum closed down about a percent, and palladium got clubbed for 2%.  Here are the charts.

The dollar index closed late on Wednesday afternoon at 79.92, and then spent the next twenty-four hours slowly chopping lower.  The low tick [79.64] came minutes before noon in New York, about the same time as the Comex "rallies" in gold and silver ended in New York.  The index closed at 79.73, which was down 19 basis points on the day.

The gold stocks hit their high at the London p.m. gold fix, which is 10 a.m. in New York.  And despite the fact that the metal itself plowed slowly higher, there was a willing seller present for the next three hours that sold the gold equities into negative territory.  From there they traded sideways in the close.  The HUI finished the Thursday session on its absolute low tick, down 1.16% on the day.

It was precisely the same chart pattern in the silver equities, except they got sold down even more.  Nick Laird's Intraday Silver Sentiment Index closed down 2.04%.

Day four of the October delivery month was much quieter, as the CME Daily Delivery Report showed that only 25 gold and 10 silver contracts were posted for delivery within the Comex-approved depositories on Monday.  The link to yesterday's Issuers and Stoppers Report is here.

An authorized participant withdrew 57,923 troy ounces of gold from GLD yesterday, and as of 10:14 p.m. EDT yesterday evening, there were no reported changes in SLV.

Joshua Gibbons, the "Guru of the SLV Bar List" updated his website with the latest weekly activity in SLV.  Here is what he had to say yesterday: " Analysis of the 02 October 2013 bar list, and comparison to the previous week's list; No bars were added, removed, or had a serial number change. As of the time that the bar list was produced, it was over-allocated 42.0 troy ounces. There was a withdrawal of 145,142.7 troy ounces on Wednesday that has not yet been reflected on the bar list, and that should appear on the next bar list (as it normally takes a day or two for the bar list to get updated)."  The link to his website is here.

For the first time this week, there was no sales report from the U.S. Mint.

There was no in/out activity in gold at the Comex-approved depositories on Wednesday.  But it was a totally different story in silver, as 1,195,057 troy ounces were received, but only 55,303 troy ounces were shipped out.  The Big 3 bullion banks/Comex silver shorts were hardly involved in the yesterday's silver action.  The link to yesterday's silver activity is here.

Here are a couple of charts that Nick Laird sent me the other day that I just didn't have room for until now.  They are the intraday price charts for both gold and silver for the month of September.  As you can see, the high in gold was at noon in Far East trading, with the low coming at 12:30 p.m. in New York.  The subsequent rally took gold back up until exactly 8 a.m. in Hong Kong, and then the price pattern repeats.  It's the precision of the timing that shows that these aren't free-market events.  It may not be noticed on a day-to-day basis, but when you average it out over a month of trading days, the rig job shows up for all to see.

In silver, the high of the day comes, on average, at 8:30 a.m. BST in London, and after that the chart pattern is the same as gold's, including the times that the silver price rallies and gets sold off.

Also take careful note of the price spikes at the fixes in both gold and silver.  The obvious take-away from all this, for all but the willfully blind, is that the "fix" is in 24 hours a day.

I don't have that many stories again, which always suits me fine, so I hope you can find the time to go through the ones that interest you.

¤ The Wrap

When you contemplate the absurdity of an insider-run electronic exchange in New York determining the revenue of an exporting country through computer games and uneconomic market corners… and not real supply/demand factors… it becomes apparent that this is a set up that could fall apart quickly, as and when the exporting countries become cognoscente of it. What JPMorgan and the CME are doing to the silver exporting countries of Latin America is not much different to me than what the Conquistadors did centuries ago. There’s just a different method to stealing the silver. Throw in a silver exporter like Russia that likes to go toe-to-toe with the U.S. on many issues, and it’s easy to imagine a legal challenge that with punitive damages could climb to many billions of dollars cumulatively. - Silver analyst Ted Butler, 02 October 2013

There wasn't any price action worth commenting on yesterday, and even the volumes were light.  Nothing to see here.  But, once again I have to mention the fact that for the ninth day in a row, silver was not allowed to close above the $22 spot price mark, which represents its 50-day moving average.  It's obvious that JPMorgan et al are keeping the precious metal market on a very tight leash.

I have nothing else to add to today's column.  I'm disappointed that there won't be a Commitment of Traders Report or a Bank Participation Report today, but what can you do?

Prices did nothing in Far East trading on their Friday, and the same can be said for London during the first 30 minutes of their trading day.  Volumes are laughable; 12,600 contracts in gold and 3,300 in silver.  The calm before the storm perhaps?  The dollar index is flat.

And as I hit the "send" button on today's missive at 5:20 a.m. EDT, all four precious metals appear to be developing price patterns similar to what they were this time yesterday in London, a slight negative bias, and it remains to be seen if this pattern continues going into the Comex open like it did on Thursday.  Volumes at this time are still fumes and vapours, and the dollar index is up about 10 basis points.

Since today is Friday, it wouldn't surprise me in the slightest if the JPMorgan et al took prices lower in New York trading, and I'd love to be wrong about that.

Enjoy your weekend, or what's left of it, 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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