Wednesday, April 9: Today in Gold and Silver

NEW YORK ( TheStreet) -- Gold added three bucks to its price during the first several hours of Far East trading on their Tuesday morning---but flat-lined at $1,300 the ounce until about 1:30 p.m. Hong Kong time.  Then the gold price added another eight bucks or so in pretty short order---and added about the same amount shortly after the London open as the gold price rose into the 10:30 a.m. BST London a.m. gold "fix". Volumes were enormous, as the not-for-profit sellers were everywhere. That was its high tick of the day---and from there it chopped quietly lower into the 5:15 p.m. EDT electronic close in New York.

The CME Group recorded the high and low ticks at $1,134.70 and $1,296.80 in the June contract.

Gold closed the Tuesday session at $1,308.00 spot, up $11.10 on the day---but well of its high tick.  Volume, net of April and May, was around 129,000 contracts---with more than a third of that coming before the London a.m. fix, as JPMorgan et al were the short sellers of last resort right from the moment that the price break-out started, throwing everything they had at it to prevent the price from closing about its 50-day moving average---which it broke through handily at the London morning gold fix.

With some minor exceptions, the silver price followed a similar price as gold's, with the high tick coming at the London a.m. gold fix as well.  After that it chopped lower into the close.

The CME recorded the high and low as $20.175 and $19.85 in the May contract.  Silver's volume on that early rally wasn't overly heavy---and there were no moving averages involved, so "da boyz" had a pretty easy time of it as far as price management was concerned.

Silver closed in New York at $20.06 spot, up 19.5 cents on the day.  Volume, net of roll-over, was only 14,500 contracts, which was a thousand contracts less than Monday's net volume.   Silver's gross volume on that early rally wasn't overly heavy---and there were no moving averages involved, so "da boyz" had a pretty easy time of it as far as price management was concerned.  After the price got capped, roll-over action really picked up.

Platinum traded unsteadily higher on Tuesday, with its high coming at noon in New York.  After that, the price didn't do much.

Palladium also rallied, but that rally ended at 9 a.m. in London---and the price traded sideways in a very tight range for the remainder of the Tuesday session---gaining back 2 of the 3 percentage points it got docked in Monday's trading.  It's high tick came at noon EDT as well.

The dollar index closed late on Monday afternoon at 80.22---and then traded ruler flat until around 2:45 p.m. Hong Kong time on their Tuesday.  Then the decline began---and the 79.72 bottom was painted just a few minutes after 2:30 p.m. EDT.  From there the index rallied a handful of basis points into the close.  The index finished the Tuesday trading session at 79.78---down 44 basis points on the day.

The gold stocks gapped up a bit more than 2% at the open---and then faded a bit, hitting its low tick around 11:35 a.m. EDT.  After that, the stocks rallied slowly but steadily into the close---and finished the day nearly on their high tick.  The HUI finished up 2.35%.

The silver equities gapped up as well, but put their low in much earlier in the day---and Nick Laird's Intraday Silver Sentiment Index closed up a very decent 2.11%.

The CME's Daily Delivery Report showed that 137 gold and 2 silver contracts were posted for delivery within the Comex-approved depositories on Thursday.  The only short/issuer in gold was Jefferies---and the two biggest long/stoppers were JPMorgan and Canada's Scotiabank, as they will take delivery of 105 contracts between them.  The link to yesterday's Issuers and Stoppers Report is here.

There was another withdrawal from GLD yesterday.  This time it was 86,707 troy ounces that was withdrawn by an authorized participant.  And as of 10:02 p.m. EDT yesterday evening, there were no reported changes in SLV.

The U.S. Mint had a small sales report.  They sold 308,500 silver eagles.

There wasn't a lot of in/out activity in either gold or silver on Monday over at the Comex-approved depositories.  As a matter of fact, there was no in/out activity in gold at all---and in silver, there was 39,185 troy ounces reported received---and 125,273 troy ounces shipped out.  The link to that activity is here.

Here's a chart that Nick Laird slid into my in-box just after midnight Denver time.  It's the updated " Monthly Chinese Gold Net Imports from Hong Kong" graph and, as always, it's a sight to behold.

I have the usual number of stories for you today, but I'm very light on anything regarding precious metals, as there wasn't much news of that sort on the Internet yesterday.  As I've said before, it's always "feast or famine" in my Wednesday column, as most of the really big stories show up over the weekend, or on Monday.  However, there are still quite a few other stories worthy of your attention.

¤ The Wrap

I know many are fed up, tired and worn out with the long-running silver manipulation, particularly with the price events over the past three years. So am I. Many are reaching the conclusion that the manipulation is so well entrenched (and government supported) that it will continue indefinitely. However, I do have the advantage of studying silver intensely for almost 30 years, so I can’t help but see things in a different perspective than someone with a much shorter time frame. I also have the advantage of experiencing along the way enough instances of confirmation for what were originally “kooky” ideas of mine (such as the whole premise of a COMEX silver manipulation in the first place) that I “know” that the manipulation must end. - Silver analyst Ted Butler: 05 April 2014

It was another day where JPMorgan et al had to step in front of rallies in all four precious metals, or watch them explode to the upside and, for the most part, they had the deed done by the London a.m. gold "fix".  Despite the fact that there are ongoing investigations into insider trading at the gold fixes, "da boyz" appear to be unfazed---and are just as in-your-face as they've always been.

Here are the gold and silver charts updated with yesterday's price data.

As you can see from the chart---and as I mentioned further up in the column---the gold price was prevented from closing above its 50-day moving average.  It will be interesting to see if we rally from there, or have another price "failure" at this point.

Silver's rally wasn't allowed to get far, either---but as Ted Butler mentioned on the phone yesterday, there weren't any major moving averages broken to the upside, so there was no incentive for the technical funds to come back into the market on the long side, so JPMorgan et al had a pretty easy time of it in silver yesterday.  And as I mentioned further up, volume during that big rally very early yesterday morning wasn't overly heavy to begin with, at least not compared to gold.  But the early volume, just like in gold, was virtually all of the HFT variety.

However, one thing I have noticed, is the heavy roll-over volume in silver during the first two trading days of the week.  May is a delivery month in silver, but I don't remember seeing the Comex futures holders in silver exiting the delivery month so far in advance of options and futures expiry.  But then again, maybe I'm just imagining things, but it will be something that I'll keep an eye on over the next few days.

And as I write this paragraph, London has been open about 10 minutes.  Gold rallied about five bucks or so in Far East trading, but has been sold back down a bit going into the London open.  I wouldn't read much into this.  Silver's sojourn above the $20 spot price mark didn't last long---and has been sold down about 15 cents from yesterday's close---and back below the $20 mark.  Gold volume is about average for this time of day---and is all of the HFT variety.  Gross volume in silver is already north of 17,000 contracts, which is enormous.  A lot of that is roll-overs out of the May contract, but I can tell you that this roll-over activity is highly unusual for this time of day---so maybe I'm not "imagining things" as I mentioned in the previous paragraph. Platinum prices are up a bit---and palladium prices have been comatose since trading began in New York at 6 p.m. Tuesday evening.  The dollar index isn't doing much of anything, either.

Today, at the close of Comex trading, is the cut-off for this Friday's COT Report so, hopefully, all of the reporting week's data, including everything that happens today, will be in it.

If you took the time to read the King World News interview with Agnico Eagle CEO Sean Boyd, you'll note that right up front he admits that the price of gold is being actively "managed".  He, along with every other precious metal miner on Planet Earth knows exactly the same thing---and quite a large number of them have admitted to in private---and it's nice to see Sean state the obvious.

But will he or any other precious metal mining company do anything about it?  No, they won't do a thing.  But what about their fiduciary responsibility to their stockholders you might ask---and rightfully so.  As I've said countless times over the years---the miners don't give a flying #%&$ about their shareholders---and that would be all of us.  And as I've also said, when gold and silver prices finally do rise to some sort of free-market price, or as high as I think that JPMorgan et al will allow them to rise, I'll be selling every one of my precious metal stocks---and I'll never own one again as long as I live.

And as I hit the send button at 5:15 a.m. EDT, I note that both gold and platinum have given back what little gains they had now that London has been trading a bit more than two hours.  Silver is now down 20 cents---and palladium is still trading flat.   Volumes in both gold and silver have dropped off to just about nothing---and all is quiet at the moment. The dollar index isn't showing any signs of life, either.

Gold and silver prices could go either way from here, but after gold's "failure" to break above its 50-day moving average yesterday, a down-side move going forward wouldn't surprise me in the slightest, even though I'm hoping for the alternative.

Before heading off to bed, I'd like to mention the Casey Researchproduction entitled " Meltdown America: Exclusive Documentary World Premiere.  It runs almost 29 minutes and features the harrowing tales of three people who survived economic and political collapse in Zimbabwe, Yugoslavia, and Argentina… with guest commentators, Doug Casey; Jeff Opdyke from Sovereign Society; David Walker, former U.S. Comptroller; Jane Kokan, former BBC/CNN journalist; Dr. André Gerolymatos, former member of the Canadian Advisory Council on National Security; and Scott Taylor, war correspondent and Publisher, Esprit de Corps magazine---discussing how these powerful stories of hardship foreshadow what soon could be happening in the U.S.

This absolute must watch documentary was posted on the Casey Research website yesterday---and the link is here.

I hope your day goes well---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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