Wednesday, July 30: Today in Gold and Silver

NEW YORK ( TheStreet) -- The gold price did little in Far East trading on their Tuesday, but rallied sharply the moment that London opened.  The rally wasn't allowed to get far---and then at, or shortly before the London p.m gold fix, the HFT boyz showed up and spun the price back below the $1,300 spot mark, with the low of the day coming at 12:15 p.m. EDT.  From there the gold price poked its nose back above the $1,300 price mark, but wasn't allowed to close there.

The CME Group recorded the high and low ticks as $1,312.10 and $1,295.50 in the August contract.

Gold closed in New York yesterday at $1,298.80 spot, down $4.70 from Monday's close.  Gross volume was north of 350,000 contracts, but it netted out to an insignificant 8,500 contracts.

The price chart for silver was similar to gold's, but the price action was more volatile.  The high and low ticks for silver occurred at the same time as they did for gold.

The high and low ticks for silver were $20.845 and $20.505 in the September contract.

Silver finished the Tuesday session at $20.56 spot, down a half a cent.  Volume, net of July and August, was around 39,500 contracts---of which, about 3,700 contracts were traded in December 2014 and March 2015.

Platinum also rallied a bit at the Zurich open---and its rally ended an hour later---and it was pretty much all down hill from there, with platinum closing just about on its low of the day, down ten bucks.

It was more or less the same chart pattern for palladium, as its decent rally at the Zurich open also got capped---and then it followed a price decline similar to the one that it had on Monday.  The low tick came at 1 p.m. in New York trading---and the subsequent rally didn't get far.  Palladium closed down two bucks.

The dollar index closed late on Monday afternoon in New York at 81.00 right on the button.  It had a tiny up/down rally that lasted until about 9:40 a.m. BST in London---and from that low, headed higher.  I would surmise that someone hit the 'sell gold and silver, buy the dollar index' button at that point  All the gains were in by noon in New York---and it backed off a couple of basis points into the close.  The index finished the day at 81.21---up 21 basis points.

The gold stocks opened in the black---and then got sold down immediately when the gold price got hit just before the London p.m. fix.  After that they chopped sideways, although they did make a rally attempt off the 12:15 p.m. low tick, but that ran out of gas shortly after 2:30 p.m. EDT.  The HUI finished down 0.61%---giving back all of Monday's gain.

The silver equities followed a similar price path as gold stock during the first hour of trading, but then rallied quietly back into positive territory, with the high of the day coming at about 1:30 p.m. EDT---and from there the equities slid a bit into the close.  Nick Laird's Intraday Silver Sentiment Index closed up 0.22%.

The CME Daily Delivery Report showed that 50 gold and 26 silver contracts were posted for delivery within the Comex-approved depositories on Thursday.  Of the 26 silver contracts issued, 25 of them were stopped by the CME itself in order to fill delivery orders in the silver mini contract of 1,000 troy ounce good delivery bars.  You can check it all out in yesterday's Issuers and Stoppers Report, which is linked here.

Once again there were no reported changes in GLD---and as of 8:09 p.m. EDT, there were no reported changes in SLV, either.

The good folks over at Switzerland's Zürcher Kantonalbank updated their website with the latest reports on the gold and silver ETFs at the close of business on Friday, July 25.  Their gold ETF declined by another 19,737 troy ounces---and their silver ETF shed 430,803 troy ounces.

There was a smallish sales report from the U.S. Mint.  They sold 260,000 silver eagles.

There was no in/out gold movement worth mentioning at the Comex-approved depositories on Monday.  In silver, there was 600,256 troy ounces reported received---and nothing shipped out.  All the silver deposited went into Brink's, Inc.

Just as a matter of interest, here's the 5-minute tick chart for gold from yesterday that reader Brad Robertson sent around.  The times shown are MDT, so add two hours for EDT.

Here's a brand new chart that Nick Laird sent my way early yesterday evening.  It shows the weekly deliveries into the Shanghai Gold Exchange---and he's presenting it in the same format as he does for the Russian Reserves, which I consider to be entirely appropriate.

Of course China is importing much more gold than this chart shows, but this---and what is imported through Hong Kong every month---is all that's visible

It's another day where I have more stories than I know what to do with---and that's why I just post 'em--and let you sort through them.

¤ The Wrap

Including the buying of new long contracts in the managed money category of some 20,000 contracts, the technical funds have bought an incredible 53,000 net contracts in COMEX silver futures since the beginning of June, the equivalent of 265 million oz. It is not possible that the buying of 265 million oz of COMEX silver futures over the course of 6 weeks would not result in more than a rally of close to $2 were it not for collusive and deliberate commercial selling designed to cap the price. Everything about the CME, which oversees COMEX trading, screams out that this is a criminal enterprise.

While this [past] week’s COT changes are inconsequential, the same can’t be said about the change over the past 6 or 7 weeks; I’m still shaking my head over what has transpired on the COMEX. Simply put, COMEX futures positioning is the sole explanation for the (tepid) price rise---and will, most likely, be the sole explanation for what occurs next. - Silver analyst Ted Butler: 26 July 2014

As I said in The Wrap yesterday, Tuesday was the day for the large traders on the Comex to clear out their August positions unless they were standing for delivery.  And as I mentioned at the top of this column, gross volume was around 354,000 contracts yesterday---and with the exception of a few thousand contracts, it was all roll-overs out of August and into future months.

The rest of the traders have to be out today---and tomorrow is first notice day for the August delivery month---and I'll have all the details in tomorrow's column.

Here are the 6-month charts for both gold and silver once again.

I wasn't happy to see "da boyz' 'show up with their trading algorithms and drop the gold price below $1,300 spot at the London p.m. gold fix---but what can you do?  JPMorgan et al run the precious metal show on the Comex---and nobody is going to stop them.  I've said a number of times that precious metal prices probably fall under the national security umbrella now---and if that's the case, nothing will change from a price perspective unless it's allowed.

As I write this paragraph, the London open is about 30 minutes away.  All four precious metals have done sweet tweet during the Far East trading session on their Wednesday.  Net volume in gold is barely 6,500 contracts---and most volume is now in the new front month, which is December.  Silver volume is hardly worth mentioning at 1,800 contracts.  The dollar index isn't doing much.

Yesterday was also the cut-off for this Friday's Commitment of Traders Report---and it will be interesting to see how much of Tuesday's price action shows up in Friday's report.  I'm not expecting much change in Friday's report, but my track record at guessing hasn't been that great for the last little while, so I'll just reserve judgment until then.

I'm heading off to bed earlier than usual this morning, because there isn't much going on anywhere.  Gold and silver prices are flat now that London has been open about 90 minutes---and platinum and palladium are up a bit.  Volumes are fumes and vapours---and that's being kind.  As I fire this out the door at 4:25 a.m. EDT, net gold volume is barely 10,000 contracts---and silver volume is 2,800 contracts.  The dollar index is now up 7 basis points.  Nothing to see here, as the church mouse has obviously left the building.

As I said in Tuesday's column, I wasn't expecting much in the way of price volatility for the remainder of July---and so far this has turned to be the case.  There's an FOMC meeting next week---and it will be interesting to see what "da boyz" have in store for us when the smoke goes up the chimney on Wednesday, or maybe sooner.

That's all I have this time.  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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