Gold stocks up a hair---and silver stocks down a hair. No changes in either GLD or SLV. Another sales report from the U.S. Mint. A big gold deposit in the HSBC USA Comex-approved depository on Friday---and more movement in silver, as a full truck load was received at Brink's, Inc.
NEW YORK ( TheStreet) -- NOTE: I'm off to the Casey Conference in San Antonio tomorrow morning---and until my Tuesday column next week, my daily offerings from the Lone Star State [including the one tomorrow] are going to be shockingly short, with the Critical Reads and The Photos and Funnies sections taking the biggest hits. Besides my presentation, I have lots of events I will be participating in while I'm there---and something has to get sacrificed. I hope you'll agree that it's better than no column at all. - Ed Gold got sold down a few dollars by the HFT boyz at the Sunday open in New York---and it printed another new low for this move down. From there gold rallied a bit, with the high of the day coming shortly before 1 p.m. BST in London. Then the New York crowd took over---and the gold price got sold down a bit, although it did manage to finish up on the day. The low and high ticks, such as they were, were reported by the CME Group as $1,226.30 and $1,239.20 in the December contract. Gold finished the Monday session at $1,232.70 spot, up $4.40 from Friday's close. Net volume was pretty light at only 91,000 contracts. Silver opened down, as usual---as it has except for one day this month so far. Then, like gold, it rallied until around lunchtime in Hong Kong---and chopped sideways in a very tight range for the remainder of the Monday trading day. The low and high ticks aren't worth the effort to look up. Silver finished the Monday session at $18.655 spot, up 4.5 cents from Friday's close. Net volume was certainly on the lighter side at only 24,500 contracts. Platinum didn't do a lot, but rallied sharply just before lunch in Zurich. That rally got stepped on around 2 p.m. Europe time---and 'da boyz' in New York turned a gain into a five dollar loss by the close of electronic trading at 5:15 p.m. EDT. The trading pattern for palladium was very similar---and the decent rally in that metal also met its maker at 2 p.m. Zurich time, about twenty minutes before the Comex open. Palladium finished up a buck. The dollar index closed late on Friday afternoon in New York at 84.22---although the ino.com chart below shows it opened in New York on Sunday evening at 84.15. From there it rallied to its 84.40 high minutes after 8 a.m. EDT, which was the time that the rallies in all four precious metals came to an end. From that high, the index sold off 20 basis points by the 10 a.m. EDT London p.m. gold fix---and then rallied a handful of basis points into the close. The index closed at 84.25. Here's the 3-day chart. The gold stocks opened in positive territory, but fell into negative territory right away---and then struggled back as the trading day in New York wore on. The stocks managed to close in positive territory, as the HUI edged higher, up 0.12%. The silver equities followed a similar path, but couldn't manage to get back above unchanged after their initial sell-off. Nick Laird's Intraday Day Silver Sentiment Index closed down 0.36%. The CME Daily Delivery Report showed that only 5 gold and 5 silver contracts were posted for delivery within the Comex-approved depositories on Wednesday. With a big chunk of silver contracts left to deliver in September, you have to wonder what the short/issuer[s] is/are waiting for, as it's not beneficial to them to wait until the last minute---unless, of course, they're waiting for the silver to deliver. The CME Preliminary Report for the Monday trading session showed that there are still 33 gold contracts open in the September contract, down 12 contracts from Friday's report. In silver, there are still 609 contracts left, down 15 from Friday---and subtracting the 5 contracts posted for delivery in each metal in the previous paragraph, doesn't change things much. I was rather surprised [but happy] to see that there was no withdrawal from GLD yesterday---and as of 7:40 p.m. EDT yesterday evening there were no reported changes in SLV, either. The U.S. Mint had another sales report yesterday. They sold 7,000 troy ounces of gold eagles---3,000 one-ounce 24K gold buffaloes---and 200 platinum eagles. Over at the Comex-approved depositories on Friday, there was a big 112,258 troy ounce gold deposit into HSBC USA---the custodian for GLD---and a tiny 1,794 troy ounces were reported withdrawn. The link to that activity is here. In silver, it was another fairly busy day, as there was 625,813 troy ounces deposited---and 5,049 troy ounces removed. The lion's share of that disappeared into the vault over at Brink's, Inc. The link to that action is here. Since this is my Tuesday column, I have a fair number of stories for you today and, as usual, the final edit is all yours.
¤ The Wrap
[Last] week, 9.1 million ounces of silver were moved into or taken out from the COMEX silver warehouses, about the highest weekly turnover yet, as total inventories rose 1.6 million oz to 181.8 million oz. Taken with the above average turnover over the past few weeks, if anything, the turnover seems to be intensifying. The 9.1 million oz turnover this week was more than 56% of all the silver mined in the world for a week (16 million oz). Considering that this spectacle of physical turnover is unprecedented in any other commodity, is it unreasonable to wonder why it exists only in silver and in the warehouses licensed by the COMEX? An additional signal in the physical silver market that has been unusual and unexpected (at least by me) are the deposits into the big silver ETF, SLV. This week close to 6.5 million oz of silver were deposited into the trust and over the past four weeks nearly 14 million oz have been deposited. I don’t recall a previous occasion of extended price weakness and significant metal inflows into the SLV, so the deposits were certainly unexpected by me. Clearly, there have been no net inflows into the big gold ETF, GLD, further highlighting the deposits into SLV. Between a different COMEX warehouse movement pattern and dissimilar ETF metal flows, the stagnant level of silver/gold price ratio becomes even more suspicious. - Silver analyst Ted Butler: 13 September 2014 All in all, it was a pretty quiet trading day in both gold and silver on Monday---but both metals, along with platinum and palladium began to head south around 8 a.m. EDT as the dollar index peaked and began to head south as well. Not that I want to stick my neck out, but if forced to bet, I'd guess that the bottom is in for all four precious metals and, like I said on Saturday, if we're not at the bottom, we're very close. I said about a week or so ago that it wouldn't surprise me in the slightest if we got one more kick in the ass to downside before we were done---and that not only turned out to be the case, but they took the precious metals lower than even I expected. Here are the 6-month gold and silver charts with Monday's data included. If things remain quiet until the Comex close at 1:30 p.m. EDT this afternoon in New York, we should see another Commitment of Traders for the record books on Friday. And as I write this paragraph, the London open is about 55 minutes away. After opening flat in New York at 6 p.m. yesterday evening, the gold price rallied a few bucks---and is now trading sideways. Ditto for silver, platinum and palladium. Net gold and silver volumes are very quiet---gold a hair over 13,000 contracts and silver a few contracts over 3,600. The dollar index, after falling 15 basis points in early Far East trading, is back to unchanged. But as wonderful as current bullish structure is in the Comex futures market, how fast and how high we rally will be determined by how the Commercial traders respond as the technical funds/managed money traders begin to cover and go long. Nothing else matters!!! The last rally off the record COT structure back in very early June only added $100 to the gold price and $2.75 to the silver price, as the Commercial traders let the managed money traders off with barely a spanking. If JPMorgan et al decided to put their hands in their pockets and go on vacation for a couple of weeks, we would have precious metal prices [particularly silver] that would be the stuff of legend for a thousand years. So, we wait some more. And as I hit the send button on today's effort at 5:55 a.m. EDT, I note that three of the four precious metals are moving higher, but palladium isn't doing much. Net volume in gold is 19,000 contracts, but certainly doesn't reflect the volume associated with this current move to the upside, as the CME volume data is delayed by at least ten minutes. The same can be said for silver, as its net volume is 5,800 contracts at the moment. The dollar index went through a 25 basis point down-up-down move that has brought it back to basically unchanged. Here's the Kitco gold charts as of 4:53 a.m. EDT. With all four precious metals totally sold out to the downside, nothing will surprise me when I check the Kitco charts when I get up later this morning. Enjoy your day---and I'll see you here tomorrow.