Another down day for precious metal equities. New lows set in gold and silver at the p.m. gold fix in London. Another withdrawal from GLD...and no changes in SLV once again. The U.S. Mint has tiny sales report. Not much in/out activity at the Comex-approved depositories on Wednesday.
NEW YORK ( TheStreet) -- It was pretty much a "nothing" sort of day in gold on Thursday. The price rallied a hair in the early going in the Far East, and then traded flat until shortly before 1 p.m. in London. Then some selling pressure appeared that lasted until the London p.m. gold fix, and the gold price quietly set a new low for this move down at that point. The subsequent rally ran into a willing seller minutes after 12:30 p.m. in New York, and then sold off a few dollars going into the 5:15 p.m. EST close of electronic trading. The CME recorded the high and low ticks as $1,250.00 and $1,235.80 in the December contract. Gold closed at $1,242.40 spot, down 40 cents from Wednesday. Gross volume was a hair over 270,000 contracts, but once the spreads and roll-overs were subtracted out, net volume fell all the way down to 126,000 contracts. The silver price didn't do much until about 1 p.m. Hong Kong time, and then it quietly rallied to a bit over $20 the ounce by shortly after 10 a.m. in London. From there the price rolled over and hit its low the same time as gold did at the p.m. fix, also setting a new low for this move down. The rally that followed got cut off at the knees the same time as gold's rally was brought to an end, a few minutes after 12:30 p.m. in New York. After that, the price chopped sideways into the close. The December high and low, as recorded by the CME, was $20.045 and $19.705. Silver finished the Thursday session at $19.985, which was up 13.5 cents from Wednesday. Gross volume was pretty chunky as well, but net volume was only 24,500 contracts. Both platinum and palladium rallied for a few hours starting at the London open, but that was pretty much it, as they both sold off quietly for the rest of the day. Here are the charts. The dollar index closed on Wednesday at 81.06 and then proceeded to chop sideways for the entire Thursday session. The index close on Thursday at 81.01. Nothing to see here. The gold stocks gapped down, and then hit their low of the day at gold's low, which came at the London p.m. gold fix. That event occurred a few minutes before 10 a.m. Eastern Standard Time. The subsequent rally didn't get far, and the shares traded sideways for the remainder of the Thursday session, with the HUI finishing down 1.69%. Despite the fact that the price of the metal finished in the green, the same can't be said for the equities, as Nick Laird's Intraday Silver Sentiment Index closed down 1.28%. The CME Daily Delivery Report showed that zero gold and zero silver contracts were posted for delivery on Monday. November deliveries have been a bigger yawner than even I imagined they would be. Well, another day, and another withdrawal from GLD. This time it was 115,780 troy ounces. And as of 9:56 p.m. last evening, there were no reported changes in SLV. Joshua Gibbons, the "Guru of the SLV Bar List" updated his Web site with the goings-on over at SLV for the reporting week, and here is what he had to say: " Analysis of the 20 November 2013 bar list, and comparison to the previous week's list -- 3,370,836.0 troy ounces were removed (all from Brinks London), 385,030.8 troy ounces were added (all to JPM London V), and no bars had a serial number change." "The bars removed were from: Russian State Refineries (0.7M oz.), Degussa (0.6M oz.), Kazakhmys (0.6M oz.), and 23 others. The bars added were from: Russian State Refineries (0.3M oz.) and 3 others. As of the time that the bar list was produced, it was overallocated 174.8 troy ounces." The link to Joshua's Web site is here. The good folks over at Switzerland's Zürcher Kantonalbank updated their Web site with the activity in both their gold and silver ETFs as of Wednesday, November 20, almost two weeks since their previous report on November 8. Their gold EFT showed a smallish decline of 2,313 troy ounces over that period, but their silver ETF declined by a chunky 835,566 troy ounces. The U.S. Mint had a tiny sales report. They sold 2,500 troy ounces of gold eagles, along with 500 one-ounce 24K gold buffaloes. Once again there was very little gold activity over at the Comex-approved depositories on Wednesday. They reported receiving 1,929 troy ounces and shipped out 578 troy ounces. Nothing much to see here. It was somewhat more interesting in silver, but only just, as nothing was reported received, and 159,319 troy ounces were shipped out. The link to that activity is here. I don't have much in the way of stories today, but I hope you find some of interest in what few I have.
¤ The Wrap
It’s always important to keep things in perspective; the lower the prices, the more tech fund and speculator selling and the more commercial buying. That’s the game. We are advanced in this sell-off in price and time, and relative to historical COT readings. We are also in the highly unusual circumstance of being below the cost of production for many miners. Although it may seem prices will go only one way (down), the stage has been set for a price rally of no small significance. More important than the almost daily price sell-offs is what JPMorgan will do on the next silver rally. If they don’t add new shorts in silver, that rally could astound. - Silver analyst Ted Butler: 20 November 2013 Except for the obvious engineered price declines of gold, silver and platinum going into the London p.m. gold fix, there wasn't much price excitement yesterday. JPMorgan et al took a tiny slice off of three of the four salamis again, but at these price levels, its doubtful whether this effort yielded much more long selling/new shorting by the technical funds and small traders. We are only five tradings away from the December contract going off the board, and the roll-overs are now the predominant market activity to watch. I'll be interested in seeing how many gold and silver contracts are posted for delivery on First Notice Day, and even more interested in who the issuers and stoppers are during the first few business days in December. Today, at 3:30 p.m. EST, we get the latest Commitment of Traders Report for positions held at the close of Comex trading on Tuesday. As I said earlier this week, both Ted and I are expecting another decline in the Commercial net short position in silver, but we're both unsure about gold. Whatever the numbers show, I'll have them for you in tomorrow's column. Friday was very quiet from a price perspective in Far East trading, and the same can be said now that London has been open about 20 minutes. Volume in both gold and silver is extremely light, and most of the trading in gold is of the HFT variety, as it's all in the December month, and well under 10% of the volume is roll-overs. Silver's volume, both gross and net, is microscopic. However roll-overs into March represent about 25% of current volume. The dollar index is down a whole 8 basis points. And as I hit the send button two hours later at 5:20 a.m. EST, there still isn't much going in price-wise in London. Volumes in both metals are still on the lighter side, especially in silver. The roll-over activity in gold hasn't increased by much in percentage terms, but it's up to 40 percent of the gross volume in silver at this time. The dollar index is now down 17 basis points. Since today is Friday, nothing will surprise me with the New York price action when I power up my computer later this morning. I'm off to bed. Have a good weekend, or what's left of it, and I'll see you here tomorrow.