Saturday, January 18: Today in Gold and Silver

NEW YORK ( TheStreet) -- The gold price drifted aimlessly in Far East trading on their Friday---and that continued into morning trading in London.  But once the noon silver fix was in, which was also the low of the day, away the price went to the upside.  The rally got capped shortly after 11:30 a.m. EST in New York---and that was it for the day.

The CME Group recorded the low and high ticks at $1,237.30 and $1,254.60 in the February contract.

Gold closed on Friday in New York at $1,254.10 spot---up $11.40 from Thursday.  Net volume was light at only 100,000 contracts or so.

It was more or less the same for silver, with the low and high ticks coming at the same time as gold's. Once the high was in around 11:35 a.m. EST, the price got sold down a bit before trading sideways into the 5:15 p.m. electronic close in New York.

The low and high ticks were reported as $19.96 and $20.425 in the March contract.  Volume, net of January and February, was 31,500 contracts.

The platinum price didn't do much in Far East trading, but began to rally shortly before 9:30 a.m. GMT in London.  That rally got capped at precisely 12 o'clock noon in New York---and it wasn't allowed to move higher from that point onwards.

Palladium chopped sideways as well all through Far East and early London trading.  But, like gold and silver, once the noon silver fix was in in London, palladium began to rally, only to run into a not-for-profit seller around noon in New York.

The dollar index closed in New York late on Thursday evening at 80.92---and then traded sideways until 11 a.m. GMT in London.  The subsequent rally ran out of gas at, or shortly after 1 p.m. in New York.  From there it declined a handful of basis points into the close.  The index finished the Friday session at 81.22---up 30 basis points on the day.

Not surprisingly, the gold shares gapped up a bit over a percent at the open---and then rallied until noon EST when the gold rally got capped.  After that, the shares traded sideways for the remainder of the Friday session.  The HUI finished up 3.47%.

The silver equities followed a very similar price path---and Nick Laird's Intraday Silver Sentiment Index closed up 2.40%.

The CME's Daily Delivery Report showed that zero gold, but a surprising 242 silver contracts were posted for delivery on Tuesday within the Comex-approved depositories.  Jefferies was the short/issuer on all but 2 of those contracts.  It should come as no surprise that JPMorgan stopped 107 of those contracts in its in-house [proprietary] trading account---and a further 15 in its client account.  Canada's Bank of Nova Scotia was in second place stopping 60 contracts---and ABN Amro and Jefferies were tied for third place.  The link to yesterday's Issuers and Stoppers Report is here---and its worth a quick look. 

There were big deposits in both GLD and SLV yesterday.  GLD took in a chunky 241,059 troy ounces---and SLV had an authorized participant add a whopping 4,330,440 troy ounces.

The U.S. Mint had a small sales report yesterday.  They sold 4,500 troy ounces of gold eagles---1,500 one-ounce 24K gold buffaloes---but only 64,000 silver eagles.  Month-to-date the mint has sold 83,500 troy ounces of gold eagles---39,500 one-ounce 24K gold buffaloes---and 3,464,000 silver eagles.  Based on these figures, the silver/gold sales ratio so far this month works out to 28 to 1.

Over at the Comex-approved depositories there was no in/out activity in gold on Thursday.  But it was different story in silver, of course, as 956,071 troy ounces were received [all into Scotia Mocatta] and 187,381 troy ounces were reported shipped out.  The link to that action is here.

The in/out activity in silver this week, both in SLV and the Comex-approved depositories, is literally off the charts---and I would bet serious money that all this silver has built up a lot of "frequent flier" points.

Well, the numbers in this week's Commitment of Traders Report for positions held at the close of Comex trading on Tuesday, January 14th were certainly not what either Ted Butler or myself were expecting.  We were expecting the worst, but got nothing remotely resembling that.

In silver, the Commercial net short position actually decreased by 720 contracts---and now stands at 124.0 million troy ounces. In gold, the Commercial net short position increased by 3,371 contracts---and is now up to 4.53 million ounces.  I spoke to Ted briefly yesterday, but didn't have time to get into all the details.  He figures that JPMorgan's short-side corner in silver in the Comex futures market didn't change by much---but is down about 1,000 contract from the prior week, to about 16,000 contracts now.  In gold, he figures JPMorgan increased their long-side corner by about 2,500 contracts to the 59-60,000 contract mark.

I'll be very interested in what he has to say about this in his commentary to his paying subscribers later today.

It's the weekend---and I have a lot of stories for you today.

¤ The Wrap

JPMorgan is as slick (and crooked) as they come---and it’s real clever how the bank has decided which physical commodities businesses it will keep, whatever the Fed decides. The problem is that the bank manipulates gold and silver to a much greater extent than even the markets they have been formally accused of manipulating, like electricity. And, certainly, given how long JPMorgan has manipulated the price of silver and gold and how much more serious it is to manipulate the price of a world commodity, instead of merely ripping off thousands of utility customers in California and Michigan, the Fed would, hopefully, see it differently than JPMorgan. - Silver analyst Ted Butler: 15 January 2014 

I'm behind schedule, so I don't have time to write introductions to my two "blasts from the past" today.  However, the link to the pop "blast from the past" is here---and the classical "blast from the past" by Gustav Holst is here.

I was happy to see an 'up' price day yesterday---as I always expect the worst on a Friday.  But I could tell from the price action that none of the four precious metals was allowed to run away to the upside during the New York session, which is a phenomenon I commented on in this space yesterday.

We're firmly back above the 50-day moving averages in both gold and silver once again---and it remains to be seen if JPMorgan et al will show up to cap the ensuing short covering rallies.  They certainly did yesterday---and I'll be interested to see how the precious metals react, or are allowed to react, when trading begins in New York at 6 p.m. on Sunday evening.

I'm also very much interested in how this story about Germany's gold will continue to unfold in the main stream press as time goes along.  As I've said a few times in the past, I'm sure that Germany has figured out by now that their gold is long gone from the New York Fed---and if it isn't, then its been hypothecated out of existence over the years.  I'm also wondering how the Anglo/American spying operations against Germany [and the rest of Europe, for that matter] are playing a role in all of this.  The latest happenings with Deutschebank removing itself from the London gold fix is certainly another brick in the wall---and as I mentioned further up, it's interesting to speculate whether they withdrew on their own, or whether they got shoved by the German government.  Time will tell.

Although I---along with lots of others---can't shake the feeling that behind the scenes at the BIS, there are some really ugly situations developing as the chickens come home to roost on this Western price management scheme.

I think that the Chinese [along with perhaps the Russians] are finally putting the screws to the physical market---and will continue to do so until the central banks in the West finally scream "Uncle".  We'll know that day has finally arrived when the world is looking at new precious metal prices that are significant orders of magnitude higher than they are now.

I also doubt that it will happen slowly.  But as I and others have mentioned many times over the years, we'll see the gold price adjusted upwards on a weekend before Tokyo opens---and from that point onwards there will be a New World Order, but not the kind that the powers-that-be had planned for themselves.

So, we wait.

See you on Tuesday.

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.

More from Gold

Market Bears Have Devoured Gold Prices

Market Bears Have Devoured Gold Prices

Gold to Skyrocket as Italian Rebellion Unfolds

Gold to Skyrocket as Italian Rebellion Unfolds

2010-Style Crisis Approaches: Prepare For Flight To Safety

2010-Style Crisis Approaches: Prepare For Flight To Safety

Gold Prices Look 'Rich' at Current Levels - Here's What Could Change That

Gold Prices Look 'Rich' at Current Levels - Here's What Could Change That

Watch This If You're Wondering How Much Gold to Have and When to Sell

Watch This If You're Wondering How Much Gold to Have and When to Sell