Tuesday, November 12: Today in Gold and Silver

NEW YORK ( TheStreet) -- It was a very quiet trading day everywhere on Planet Earth on Monday, as volume was exceedingly light.  I would guess that this lack of activity had something to do with Veteran's Day/Remembrance Day.  As has been the case lately, the gold price got sold down a few dollars when New York opened for trading on Sunday night, and the low tick of the day was printed at 9:30 a.m. GMT in London.

The subsequent rally didn't get far, or wasn't allowed to get far; and gold traded almost ruler flat for the remainder of the day in both London and New York.

The CME recorded the low tick in London as $1,278.10 in the December contract.

Gold closed at 5:15 p.m. EST in New York yesterday at $1,281.90 spot, down $7.60 from Friday's close.  Volume, net of roll-overs, was only 73,000 contracts.

The price pattern in silver was identical to the one in gold, and the CME recorded the low tick, which occurred at the same 9:30 a.m. GMT time as gold, at $21.23 in the December contract.

Silver closed in New York at $21.35 spot, which was down 16 cents from Friday's close.  Net volume was microscopic at only 18,500 contracts.

Both platinum and palladium traded flat until Zurich opened, and then both metals got sold down to their respective lows, which came at, or just before, the 8:20 a.m. EST Comex open in New York.  The subsequent rally in platinum didn't get far, but palladium made it back to almost unchanged.  Here are the charts.

The dollar index closed in New York on Friday at 81.23, and traded flat in the Far East up until 2 p.m. local time in Hong Kong.  From there it slid down to around 81.10 by 10:30 a.m. in London, which was very close to the London a.m. gold fix.  The index didn't do much after that, closing in New York at 81.07, which was down 16 basis points from Friday's close.  Here's the chart, including Friday's data and the big-run up at the 8:30 a.m. jobs report on that day.

The gold stocks gapped down at the open, and hit their low of the day at precisely 10 a.m. EST.  The subsequent rally worked its way back to almost unchanged by the close of trading in New York, as the HUI closed down only 0.18%.

It was precisely the same chart pattern in silver, with the low tick also coming at exactly 10 a.m. EDT.  The subsequent rally took silver stocks back into the green, as Nick Laird's Intraday Silver Sentiment Index closed on the positive side of unchanged at 0.00%.

The CME Daily Delivery Report showed that zero gold and 2 silver contracts were posted for delivery within the Comex-approved depositories on Wednesday.  Like I said last week, November is always a slow delivery month, and it's certainly living up to its reputation.

There were no reported changes in GLD, and as of 7:41 p.m. EST, there were no reported changes in SLV.  But when I checked it again at midnight last night EST, it showed that an authorized participant had removed 1,733,843 troy ounces.

There was no sales report from the U.S. Mint, but I'm sure that they were closed for Veteran's Day.

Over at the Comex-approved depositories on Friday, they reported receiving a smallish 4,822 troy ounces of gold, and didn't report shipping any out.  The link to that activity is here.

As always, there was far more activity it silver, as these same warehouses reported receiving 500,318 troy ounces, and shipped out 82,177 troy ounces.  The link to that action is here.

There was no November Bank Participation Report posted on the CFTC's website yesterday, either.  Ted Butler felt it might have had something to do with Veteran's Day.  If that's the case, the report should be up on their website before 3:30 p.m. EST today, along with U.S. Mint sales.

I don't have all that many stories today, and the final edit is up to you.

¤ The Wrap

I would have thought it would be crystal clear by now to the majority of precious metals observers (and not just subscribers) that gold and silver prices are rigged and artificially set on the Comex. The game is simple – big speculators that we call commercials (and are lead by JPMorgan) trick other speculators (mostly technical funds) into buying or selling futures contracts, by rigging short term prices through the means of computer algorithms (HFT). The commercials rig prices lower to induce the tech funds into selling so that the commercials can then buy and then reverse the process to the upside. That’s it; that’s the price rig.

Proving Comex price rigging is the mechanical process of artificial pricing is easy; all you have to do is look at the government-published trading data in the COT and Bank Participation Reports. On big price declines, the technical funds are always the sellers and the commercials are always the buyers. On price jumps, the technical funds are always the buyers and the commercials are always the sellers. Because the commercials are always buying on sell-offs and selling on rallies, they appear to many to be operating legitimately. But when you glimpse slightly beneath the surface and see that the commercials control short term pricing, it should be clear that the commercials are nothing more than puppet masters; controlling how the technical funds will dance. - Silver analyst Ted Butler: 09 November 2013

Although there was no volume in either gold or silver worth mentioning, both gold and silver set new lows for this move down during intraday trading.  JPMorgan et al continue to "slice the salami" to the downside, as this price "correction" continues to unfold.

How long this "slicing" continues is unknown, but if I had to guess, it will probably last until December goes off the boards at the end of this month, and we're into the new front month, which is February for gold and March for silver.  Since the price is being ruthlessly managed, I'll be amazed if anything is allowed to go "bump" in the night, no matter how bullish the news between now and December 1.  Of course I'd love to be proven wrong.

I noted a story about low oil and gasoline prices in the Critical Reads section further up.  As I said this space a week ago, Ted mentioned that "day boyz" were skinning the tech funds in crude oil as well.  I mentioned last week that, based on the RSI, a crude oil rally appeared imminent, and it may already be underway.  Here's the six-month chart for West Texas Intermediate Crude Oil.

As I also said before, will the precious metals be allowed to rally if this event occurs?  Beats me.  We'll find out soon enough I suppose.

It's about 20 minutes until the London open as I write this paragraph, and I note that the HFT boyz were busy in the thinly-traded Far East market on their Tuesday morning.  Both gold and silver were taken to new lows for this move down, and one can only wonder if this trend will continue as the Tuesday trading session continues to unfold.  Volumes are not overly heavy, and the dollar index is up about 18 basis points.

Whatever happens today, should be in this Friday's Commitment of Traders Report, as the cut-off for it is at the 1:30 p.m. close of Comex trading in New York this afternoon.

And as I hit the send button on today's column at 5:10 a.m. EDT, both gold and silver are trading down from Monday's close in New York; gold's lower by a couple of bucks, and silver is down 20 cents.  The dollar index is now in rally mode, up 35 basis points at the moment, and volumes are about average for this time of day.

Before heading off to bed, here's something I think you should know about.  The price of BIG GOLD went up in October, and will stay up.  But until midnight Eastern Time tomorrow [Wednesday] you can still pick up a one-year subscription for $79, which is a steal in my opinion.  Three special reports will be included with this one-year subscription: 1] Bargain Buyer's Guide to Gold and Silver, 2] 2014 Gold Investor's Guide, and 3] Beginner's Guide to Investing in Silver.

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That's all I have for today, and I await the New York open with some interest.

See you 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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