Tuesday, August 19: Today in Gold and Silver

NEW YORK ( TheStreet) -- The gold price got sold down to just below the $1,300 spot price mark by shortly after 9 a.m. in Tokyo.  It gained back five bucks or so by 11 a.m. in London, but lost all that by the London p.m. gold fix.  After that it  tried to make it back to the $1,300 spot price mark, but didn't quite do it.

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

Gold finished the Monday session in New York at $1,297.20 spot, down $7.30 from Friday's close.  Volume, net of August and September, was only 79,000 contracts, so nothing of importance should be read into the price action yesterday---except to note the fact that it was closed below the $1,300 spot price mark.

The price action in silver on Monday wasn't all that exciting, either---although a bit of a rally with some legs developed shortly after the noon London silver fix.  That rally, such as it was, ended/got capped minutes before noon n New York.  Most of these gains vanished in electronic trading, as some kind soul showed up about an hour before the close and made it so.

The low and high ticks were recorded by the CME Group as $19.47 and $19.65 in the September contract.

Silver finished the Monday trading session at $19.585 spot, up 3.5 cents from Friday.  Net volume was very quiet at only 20,500 contracts.

Platinum traded flat until the Zurich open---and at that point the price headed lower.  The decline ended at 2 p.m. EDT in New York---and traded sideways from there.  Platinum closed down 14 bucks.

Palladium traded flat until 10 a.m. in Zurich---and then rallied up to $900 by 2 p.m. Europe time.  But that was it, as selling showed up---and palladium finished unchanged on the day.

The dollar index closed on Friday afternoon at 81.43---and then hit its 81.39 low about 11:30 a.m. Hong Kong time on their Monday morning.  The rally that began at that point ended about 10:15 a.m. EDT---and it chopped sideways in a very tight range for the remainder of the day.  The index closed at 81.57---up 14 basis points.

The gold stocks gapped down about a percent at the open, hitting their low tick just minutes after 10 a.m. EDT.  From there they rallied unsteadily, before firming up a bit more starting around 2 p.m. EDT---and the shares edged into the black about an hour before the close.  The HUI finished up 0.17%.

The silver equities opened a hair lower, but by shortly before lunch EDT, they were back in positive territory---and continued to quietly add to their gains as the trading day progressed.  Nick Laird's Intraday Silver Sentiment Index finished up a very respectable 1.30%.

The CME's Daily Delivery Report showed that 108 gold and zero silver contracts were posted for delivery within the Comex-approved depositories on Wednesday.  It was Barclays stepping up to the plate as the largest short/issuer with 107 contracts out of its in-house [proprietary] trading account.  The two largest long/stoppers were JPMorgan in its client account once again, with 61 contracts---and Canada's Scotiabank with 37 contracts.  The link to yesterday's Issuers and Stoppers Report is here.

The CME Preliminary Report for Monday showed that gold open interest for August is down to 616 contracts, of which you can subtract the 108 contracts posted for delivery above.  So we have 500 potential contracts left to be delivered into before next Friday.

There was a decent delivery into GLD yesterday, as an authorized participant added 67,432 troy ounces---and as of 7:45 p.m. EDT yesterday evening, there were no reported changes in SLV.  But when I checked the i Shares.com Internet site about 3:30 a.m. EDT this morning, I was amazed to see that an authorized participant [read JPMorgan] had deposited a monstrous 3,070,420 troy ounces!  Without doubt it was all deposited to cover an existing short position and, unfortunately, because it was deposited after August 15, it won't be in next week's short position report from the good folks over at shortsqueeze.com.

The U.S. Mint reported selling 259,000 silver eagles---and that was all.

Over at the Comex-approved depositories on Friday, they reported receiving 23,278 troy ounces of gold---almost all of it into Brink's, Inc.  Nothing was shipped out.  The link to that activity is here.

There was more activity in silver, of course, as 581,092 troy ounces were received---and 287,477 ounces were shipped out the door.  The 'in' action was at Canada's Scotia Mocatta---and the 'out' action was at Brink's, Inc.  The link is here.

Since this is my Tuesday column, I have a lot of stories---and the final edit is yours.

¤ The Wrap

What moves metal prices is not developments in the Ukraine, Iraq or anywhere else; all that matters is what the moving averages are and the collusive COMEX commercials rigging prices above and below those moving averages in order to induce technical fund buying or selling. I know it seems like world events may be responsible for price changes, but that’s only because most people perceive that to be the case. But collective perception is not necessarily the same as the real cause and effect of price movement. The fact is that the technical funds (led by the nose by the collusive COMEX commercials) decide to buy and sell massive quantities of COMEX metals contracts, not by studying the news or reacting to world events, but by whether prices are higher or lower than the moving averages.

Since the commercials can put prices above or below the moving averages at will, that means the commercials control the technical funds’ behavior. Gold prices didn’t fall by more than $20 in a few minutes around 8:00 a.m. on Friday because of world events; they fell because the commercials rigged prices sharply lower below the 50-day moving average and after prices were rigged lower, the technical funds sold. Then, after prices rose back above the moving averages, the technical funds bought. What’s most amazing is that even after being explained to the point of redundancy, many still refuse to see the scam that this manipulation has become. - Silver analyst Ted Butler: 16 August 2014

Monday was another one of those trading days where the price action, such as it was, didn't matter, as volumes were so low it was easy to move prices any which way---so nothing should be read into the Monday trading session.  It was just another trading day in summer---and another day off the calendar as Ted is wont to say from time to time.

Here are the 6-month charts for both gold and silver.  Nothing to see here once again---like watching grass grow, or paint dry, although gold got closed back below its 50-day moving average again.  But unless a black swan appears, JPMorgan et al will resolve this situation to the downside, as they can do whatever they please, whenever they please---and there's not a soul to stop them, or a mining company executive with gonads big enough to raise a finger in protest.

But, having said that, I'm still rather impressed by the share price action, with yesterday's gains being another case in point.  But I'm always on the lookout for "in your ear."

And as I write this paragraph, the London open is just under 15 minutes away.  With the exception of silver, all the precious metals are up a hair from Monday's close in New York.  Gold volume is a bit under 10,000 contracts---and silver's net volume is shockingly low, a handful of contracts under 2,000---a number that I've never seen this low at this time of day, ever.  The dollar index, which had been trading ruler flat during most of the Far East trading day, popped about five basis points shortly after 2 p.m. Hong Kong time.

Today, at the close of Comex trading, is the cut-off for this Friday's Commitment of Traders Report---and it will be interesting to see if we have any interesting price action during the New York session, which is still five hours away as I write this.

And as I fire this off into cyberspace at 5:15 a.m. EDT, London has been open a bit more than two hours.  I see that gold has poked its nose back above the $1,300 spot mark---and silver is even up a few cents. 

However, both platinum and palladium are back at unchanged. Gold volume isn't even 15,000 contracts, which is fumes and vapours for this time of day---and silver's volume is only around 3,500 contracts, which is pretty amazing.  Based on this, nothing should be read into today's price activity up to this point.  The dollar index is up about 9 basis points.

It appears that it will be another quiet day in the precious metals---and if anything does erupt, it probably won't be until after the noon London silver fix, which is 7 a.m. EDT.

That's all that I have for today, which is more than enough---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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