Tuesday, October 22: Today in Gold and Silver

NEW YORK ( TheStreet) -- Gold didn't do a whole heck of a lot in Far East trading on their Monday.  Once again it rallied a bit in the final hour of trading before the London open and, as I get tired of saying, the rally [such as it was] got dealt with in the usual manner.  The low of the day acme around 11 a.m. BST in London, and the tiny rally at the Comex open got dealt with at 9 a.m. in New York, and that was pretty much it for the day.

The CME recorded the low and high ticks as $1,312.00 and $1,323.90 in the December contract.

Gold closed in New York yesterday at $1,316.60 spot, down 80 cents from Friday's close.  Volume, net of October and November, was unbelievably light at only 79,000 contracts, so I wouldn't read much into Monday's price action, although it was obvious that a not-for-profit seller was ever watchful.

It was more or less the same chart pattern in silver, except for the fact that the rally at the Comex open was far more obvious.  But it, too, got smacked a minute or so after 9 a.m. EDT, just like like the gold price.  After that it quietly sold down a hair going into the 5:15 p.m. EDT electronic close.

The low, which came at or just before the noon BST London silver fix, was recorded by the CME as $21.85, and the high was 22.335.  Both numbers are for the December contract.

Silver closed on Monday at $22.235 spot, above the $22 spot mark again, and up 28 cents from Friday's close.  Except for the willfully blind, it should be obvious that silver would have finished materially higher if a seller of last resort hadn't been dicking with the price.  Volume in silver was light [but not that light] at 30,000 contracts net of October and November.

Platinum didn't do much yesterday, and palladium had a tiny rally once trading began at 8:20 a.m. EDT in New York.  Here are the charts.

The dollar index closed late on Friday afternoon in New York at 76.62, .and chopped slightly higher as the Monday trading session moved along.  There was a tiny up/down rally for a few hours between 7 a.m. and 1:40 p.m. EDT, but that was all the 'action' there was.  The high tick came about 9:15 a.m. in New York, about 10 minutes after the not-for-profit seller showed up in both gold and silver.  The index finished at 79.69, up a whole 7 basis points.  Nothing to see here.

The gold stocks gapped up and rallied until shortly after 11 a.m. EDT.  From there they chopped sideways until the last 30 minutes of trading.  Then they had a little spurt at the close, and the HUI finished the Monday trading session up 2.33%.

It was more or less the same chart pattern in silver, but Nick Laird's Intraday Silver Sentiment Index closed up only 1.66%.

The CME's Daily Delivery Report showed that 131 gold and 42 silver contracts were posted for delivery within the Comex-approved depositories on Wednesday.  In gold, the largest short/issuer was HSBC USA with 128 contracts.  It should come as no surprise that JPMorgan was the biggest long/stopper with 130 contracts.  In silver, Jefferies issued 40 contracts, and JPMorgan stopped 30 of them as well.  The link to yesterday's Issuers and Stoppers Report is here.

There was a chunky withdrawal from GLD yesterday, as 337,814 troy ounces was shipped off for parts unknown.  This had nothing to do with the price activity of the prior week, as the gold price rose $65 during that time period, so it's obvious that this gold was more urgently needed elsewhere.  China perhaps.  And as of 10:22 p.m. EDT yesterday evening, there were no reported changes in SLV.

Since yesterday was Monday, and not a holiday like last week, the U.S. Mint had a sales report.  They sold 3,000 ounces of gold eagles; 1,500 one-ounce 24K gold buffaloes; and 416,500 silver eagles.

There was decent movement in gold over at the Comex-approved depositories last Friday.  They reported receiving 96,450 troy ounces, and shipped out only 225 troy ounces.  The big receipt was over at JPMorgan Chase.  The link to that activity is here.

In silver, these same depositories reported receiving 416,679 troy ounces, all of it into HSBC USA's vaults.  Only 27,963 troy ounces were reported shipped out.  The link to that action is here.

I don't have all that many stories today, but some of the interviews in the precious metal section will take up a fair chunk of time if you decide to listen to all of them.  And, as usual, the final edit is up to you.

¤ The Wrap

Gold prices were rigged lower by historic percentages this year on the COMEX due to JPMorgan and other collusive commercials inducing technical funds into selling at progressively lower prices. Commitments of Traders (COT) data prove conclusively that from last December to the price lows of the summer, almost 240,000 net contracts (equal to 24 million oz) of gold were sold by technical funds and other speculators and bought by the commercials on the COMEX (with JPM alone accounting for 15 million of those ounces). This was the largest transfer of gold positions in COMEX history and was the sole reason why gold prices collapsed – in order to allow the massive commercial buying. - Silver analyst Ted Butler: 20 October 2013

With low volumes, it was pretty easy for anyone with an agenda to push prices wherever they wanted them to go on Monday, and that's obviously what happened at the London and New York opens.  I wouldn't read much into it, except for the fact that the sellers of last resort haven't gone away.

Today is the cut-off for this Friday's Commitment of Traders Report, the first one in a month.  Both Ted and I are more than interested in what it has to show.  The October Bank Participation Report also puts in an appearance on Friday was well.

At the moment, both gold and silver are sitting just under their respective 50-day moving averages, and as Ted said on the phone yesterday, once we break above them, we'll find out pretty quick if JPMorgan et al are going to resurface as sellers of last resort once again.  That, and that alone, will determine how high and fast prices rise from there.  All we can do is wait it out.

In overnight trading, there wasn't much price action in any of the four precious metals.  All four were sold down a hair once New York opened last night at 6 p.m. EDT, but all struggled back to almost unchanged going into the London open.  Volumes, which I thought were pretty light yesterday, are even lighter now, as of 3:15 a.m. EDT, as there were no rallies to speak of in either gold or silver to squash at the London open today.

And as I hit the send button on today's efforts, I note that all four precious metals came under a bit more selling pressure around 9:30 a.m. BST in London.

Here's what the gold chart looked like at 5:15 a.m. EDT.  The small sell-offs in the other three precious metals were far more gradual, and silver is hanging on to the $22 spot price mark by its fingernails at the moment.

Not surprisingly, volumes have blown out a bit more than 40% compared to what they were a couple of hours back, but they're still very light all things considered.  As of 5:20 a.m. EDT, gold volume was 23,000 contracts, and silver's volume was a bit over 8,000 contracts.

I refuse to speculate on how the rest of the Tuesday trading day will unfold, but nothing would surprise me considering what's going on at the moment.  So I'll be prepared for anything when I power up my computer later this morning.

That's all for today.  I'm off to bed.

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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