Thursday, August 14: Today in Gold and Silver

NEW YORK ( TheStreet) -- Gold did very little in Far East trading and the first half of the London trading day on Wednesday.  The rally at the Comex open wasn't allowed to get far---and was sold back down to unchanged by noon in New York.  It rallied a few dollars going into the 1:30 p.m. Comex close---and then chopped sideways into the 5:15 p.m. close of electronic trading.

The low and high aren't worth the effort to look up.

Gold finished the Wednesday session at $1,312.20 spot, up $3.70 from Tuesday's close.  Volume, net of August and September, was pretty light at only 104,000 contracts.

The silver price followed more or less the same price path as gold, expect the rally at the Comex open got sold down harder---and silver made a new low for this move down---and that low was printed about 11:50 a.m. EDT.  The price rallied a bit going into the Comex close---and the didn't do much after that.

The high and low ticks were recorded by the CME Group as $20.085 and $19.705 in the September contract.

Silver closed at $19.81 spot, down 10.5 cents from Tuesday's close.  Net volume was 33,000 contracts.

Platinum didn't do much of anything in early Far East trading, but developed a positive price bias beginning around 2 p.m. Hong Kong time.  It was up a whole six bucks on the day by shortly before 11 a.m. EDT---and then a thoughtful soul sold it down about a percent, with the low coming minutes before noon in New York.  From there it rallied back to almost unchanged---and down a buck on the day.

The price action in palladium was similar, but both the corresponding rally---and subsequent sell-off, were much less pronounced.  Palladium manged to finish up a buck.

It was another day where all four precious metals were rallying---and then all got sold off during the New York trading session.

The dollar index closed on Tuesday at 81.51---and didn't do much of anything until shortly after 2 p.m. Hong Kong time.  Then it rallied to its 81.65 high before it had a 25 basis point down/up move between the 8:20 a.m. Comex open and 11:40 a.m. EDT.  After that the index slid a small handful of basis points into the close, finishing at 81.61---up 10 basis points.

The gold stocks chopped and flopped either side of unchanged yesterday---and finished the day that way, as the HUI closed down a miniscule 0.05%.

The silver equities barely got a sniff of positive territory on Wednesday---and headed lower almost immediately.  The low of the day came at the low for silver, about 11:50 a.m. EDT.  From there they cut their loses by a bit, as Nick Laird's Intraday Silver Sentiment Index closed down 0.87%.

The CME Daily Delivery Report showed that 6 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Friday.  Nothing to see here.

The CME's Preliminary Report for the Wednesday trading session showed that August open interest in gold declined by 117 contracts---and is now down to 1,167 contracts---so we await the final resolution on this as the month starts to wind down.

There was a tiny 8,420 troy ounce withdrawal from GLD yesterday, which was probably a fee payment of some kind---and as of 9:18 p.m. EDT yesterday evening, there were no reported changes in SLV.

There was a sales report from the U.S. Mint again yesterday.  They sold 500 troy ounces of gold eagles---500 one-ounce 24K gold buffaloes---225,000 silver eagles---and another 200 platinum eagles.

There wasn't a creature stirring in the gold departments of the Comex-approved depositories on Tuesday.  However, it was another big day for silver, as 600,769 troy ounces were reported received---and 693,508 troy ounces were shipped out the door.  All of the activity was at the CNT Depository---and Brink's, Inc.  The link to that action is here.

I have a very decent number of stories again today---and there should be some in here that interest you.

¤ The Wrap

For those with an interest in silver, I believe that a remarkably large percentage, certainly a majority, believes that silver is manipulated in price. They might not be able to articulate all the nuances of the manipulation, but they have a strong sense that there is an artificiality to silver pricing. I base this on what’s said and written on the Internet, of course, not in the main stream media, which continues to treat the topic of manipulation as something to be avoided at all costs. I believe this is the case because the biggest advertisers and commercial supporters of the main stream media tend to be the very financial institutions perpetrating the manipulation.

Nowadays, it’s actually more unusual when someone strongly denies the existence of a silver manipulation, particularly if the denier is well known. Invariably, the denial brings an outcry of disagreement to the point of mockery. Not for a minute have I ever concluded that silver is manipulated or not by the weight of popular opinion; for me, the manipulation is quite easily proven by the verifiable facts. My point is simply that more who are interested in silver believe it is manipulated in price, than not.

That might not seem like an earth-shaking revelation, but in reality it is very much so from what things once were. A quarter-century ago, very few, if any, believed silver was manipulated in price. I know this to be the case because I lived through it. For better or worse, the idea of a silver manipulation originated with me. I point this out, not to pat myself on the back, but strictly to demonstrate the difference between then and now in popular perceptions. In fact, I think you would be shocked at the degree of resistance that existed to the idea that silver was manipulated back then. - Silver analyst Ted Butler: 13 August 2014

It was another day when not much happened during the Wednesday trading session.  It was also another day that the rallies in all four precious metals, such as they were, got sold down during the New York session once again.

Here are the 6-month charts for both gold and silver---and nothing much has changed.

As I write this paragraph, the London open is about 40 minutes away.  The prices of all four precious metals aren't doing much.  Gold volume is even lower than it was this time yesterday---but silver volume is much higher than it was yesterday at this time, but still very much on the lighter side.  And, not that it matters, but the dollar index is up a half-dozen basis points.

There's not much to add to today's column, as just about everything worth saying showed up in The Wrap sections of my Tuesday and Wednesday missives---and I'm not happy when I keep repeating myself every day, which is easy to do when there's not much going on.

And as I hit the 'send' button on today's effort at 5:05 a.m. EDT, I see that all four precious metals have rallied above their respective closes in New York yesterday---and it's obvious that the rally in gold is running into resistance, as the open interest is now more than double what it was 40 minutes before the London open---and even though the rally was only about five bucks, that was obviously too much for 'da boyz'.  Silver volume is getting up there as well, but it's still very much on the lighter side, all things considered.  The dollar index is flat.

So far, everything is unfolding like it normally does this time of day, as any rally in gold and silver that begins shortly before [or at] the London open, is dealt with before the London a.m. gold fix---and then the rest is left up to JPMorgan et al in New York when the Comex opens.  It remains to be seen if this pattern repeats itself again today.

I hope your Thursday goes well, or went well if you live west of the International Date Line---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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