The precious metal shares get clubbed once more. No reported changes in either GLD or SLV. Another sales report from the U.S. Mint. Big in/out movement in both gold and silver once again at the Comex-approved depositories on Friday.
NEW YORK ( TheStreet) -- The gold price didn't do much in the early going in the Far East on their Monday, with the the high of the day, such as it was, coming around 1:30 p.m. Hong Kong time. At that point the HFT boyz showed up with their algorithms---and by 9:25 a.m. EDT, the gold price was down three or four bucks from its Friday close. Then 'da boyz' really got serious, with the low tick of the day coming shortly after 1 p.m. in New York. By 2 p.m. the gold price had recovered a few bucks, but then traded sideways on almost no volume into the 5:15 p.m. close of electronic trading. The high and low ticks were reported by the CME Group as $1,272.60 and $1,252.10 in the December contract---an intraday move of twenty bucks. Gold closed in New York yesterday at$1,255.50 spot, down $12.90 on the day. Net volume wasn't overly heavy at 96,000 contracts. Here's the New York Spot Gold [Bid] chart so you can see the Comex action in greater detail. Once again reader Brad Robertson was kind enough to send out the daily 10-minute tick chart for gold. Of course all the big volume was around the engineered price decline that began about 9:15 a.m. EDT---and don't forget, this chart shows Mountain Daylight Time, so you have to add 2 hours to get the time in New York. It was virtually the same price pattern in silver, so I shall spare you the details, as the Kitco chart below tells all. The high and low tick in silver in the December contract were recorded as $19.345 and $18.93---which was an intraday move of a bit more than 2 percent. Silver finished the Monday session in New York at $19.02 spot, down 17 cents from it's Friday close. Net volume was 28,000 contracts, which was pretty light. The New York Spot [Bid] chart looks the same as the above Spot [Bid] chart for gold, so I shan't bother posting it. Both platinum and palladium rallied in the early going in Far East trading as well, but were both closed down on the day---platinum by 7 bucks and palladium by 4 dollars. Here are the charts. The dollar index closed in New York late on Friday afternoon at 83.76---and by 11 a.m. EDT on Monday morning, it was up another 17 basis points. From there it ran away to its 84.31 high of the day, which came right at the 1:30 p.m. close of Comex trading---and from that point, it basically traded sideways into the close, finishing the day at 80.30, which was up another 54 basis points. Most of the loses in the precious metals were in long before the big run-up in the dollar index---and you can check that out on the Kitco precious metal charts posted above. I would guess that the biggest portion of the dollar rally involved more short covering. Here's the 6-month U.S. dollar index chart---and as you can see, it's at nosebleed levels. Needless to say, the gold shares got clubbed again---and the HUI finished down another 2.91%---just off its low tick of the day. The silver equities got hit by about the same amount, as Nick Laird's Intraday Silver Sentiment Index closed down 3.02%. The CME Daily Delivery Report showed that no gold or silver contracts were posted for delivery within the Comex-approved depositories on Wednesday. That was a surprise. The CME Preliminary Report for the Monday trading session showed that 24 gold and 887 silver contracts are still open in the September delivery month. There were no reported changes in GLD yesterday---and as of 5:48 p.m. yesterday afternoon, there were no reported changes in SLV, either. The U.S. Mint had another sales report. They sold 1,500 troy ounces of gold eagles---and 240,000 silver eagles. It was another big day in gold movement over at the Comex-approved depositories on Friday, as 43,603 troy ounces were reported received---and 92,210 troy ounces were shipped out. The big receipt was at Scotiabank---and the big shipment was out of JPMorgan's vault. The link to that activity is here. Of course there was even bigger movement in silver, as 831,310 troy ounces were received---and 600,941 ounces were shipped out the door. The 'in' activity was at the CNT Depository---and the 'out' activity was at Brink's, Inc. The link to all that action is here. My Tuesday column normally comes with a lot of stories---and today's offering is no exception. I hope you have time for the ones that interest you the most.
¤ The Wrap
After many weeks of having been resigned to expect and prepare for price declines, Friday's COT Report strongly suggests the end of the price decline is in sight. While the recent series of new price lows (slicing the salami) could continue for a while longer, I can no longer say that, based upon market structure, the probabilities point to lower prices. Instead, further technical fund selling potential, while not eliminated completely, looks limited, particularly in silver. - Silver analyst Ted Butler: 06 September 2014 It was another slice out of the gold and silver salamis once again on Monday---and this time by some decent amounts. Here are the 6-month gold and silver charts---and the news lows for this move down in both metals are striking. And as I write this paragraph, the London open is 10 minutes away. None of the four precious metals is doing much from a price perspective and, with the exception of gold, all are down a bit from Monday's close in New York. I also note that the HFT boyz have carved another new low for silver for this move down. Net gold volume is a bit over 15,000 contracts---and silver's net volume is 3,400 contracts. The dollar index, which was up about 18 basis points at around 11:20 a.m. Hong Kong time, is now up only 5 basis points. The only good thing about Monday's price adjustments by the HFT boyz in all four precious metals, is that all the data will be in Friday's Commitment of Traders Report. The same can be said for today's price/volume action. With new lows set in both gold and silver, we are very close to a major bottom once again---and close to being back to where we were in late May, very early June, before the last rally began. The question that can be rightfully asked at this point, is what will happen when the technical funds start covering their short positions and going long when the next rally begins and the major moving averages are broken to the upside? Will we blast off from here if JPMorgan et al stand aside and let 'er rip---or will we have a repeat of the anemic rally we experienced off the last low that began in very early June? Ted Butler put it this way in his Saturday weekly report to his paying subscribers: " The only explanation for the anemic rally was that the commercials sold with such reckless abandon that they succeeded in capping silver prices despite the enormous technical fund buying. Therefore, it is not unreasonable to assume that might occur again; as it has been happening with increased regularity over the past year or so." So, once again, we wait. And as I hit the send button on today's column at 4:55 a.m. EDT, I see that not much has happened between now and ten minutes before the London open. Gold is now down on the day, just like the other three precious metals. Gold volume is up to 25,000 contracts, which is about 'normal' for this time of day, except for the fact that the price action doesn't warrant this volume. Silver's net volume is now around 5,400 contracts, which isn't overly heavy. The dollar index is up 15 basis points. Although we are certainly very close to a bottom, it wouldn't surprise me in the slightest if 'da boyz' took another slice off the gold and silver salamis. Twenty bucks in gold, along with two bits or so in silver, would be the maximum. And if they are going to make that move, I'd like it to be today, as most of the price action, if it occurs early enough, will be in Friday's COT Report. That's more than enough for today---and I'll see you here tomorrow.