Friday, November 7: Today in Gold and Silver

NEW YORK ( TheStreet) -- There was no price activity worthy of the name in Far East trading on their Thursday---and not much in Comex trading either.  But, having said that, the three tiny rallies that did occur---starting with the one at the Comex open---all got sold down before they could get anywhere.

The high and low ticks aren't worth looking up.

Gold closed on Thursday in New York at $1,14.30 spot, up $1.30 from Wednesday close.  Net volume was pretty decent at 144,000 contracts.

Here's the New York Spot Gold [Bid] chart on its own, so you can see the very subtle price capping that occurred during the New York trading session yesterday.  It wasn't much, but it was there.

Silver spent the entire Far East and early London trading session shedding 10 cents from its price.  The rally that began at the 8:20 a.m. EST Comex open yesterday, got capped about 10:20 a.m.---and after that, the price traded sideways for the remainder of the day.

The price traded within a 25 cent range yesterday and, like gold, the high and low aren't worth my effort to look up.

Silver finished the Thursday trading session at $15.425 spot, up 11 cents on the day.  Net volume was pretty chunky as well, at 40,000 contracts.

Platinum and palladium both traded a few dollars higher until the Comex open---and then sold down quietly after that into the 5:15 p.m. EST close of electronic trading  Platinum was closed down another 12 dollars---and palladium finished lower by 8 dollars.  Here are the charts.

The dollar index closed late on Wednesday afternoon in New York at 87.47.  From there it traded flat until about 11 a.m. Hong Kong time on their Thursday morning---and then it fell down to 87.19 within an hour or so.  It didn't do much until the 8:20 a.m. EST Comex open---and then it blasted up to around 87.90 within minutes.  It rallied a bit more after than---and closed the Thursday session at 88.07---up another 60 basis points, at another new record high for this move.

Here's the 6-month U.S. dollar index chart so you can get the longer-term view.  I don't know if you'll agree or not, but it's my opinion that this rally is getting a little long in the tooth.

The gold stocks gapped up about 2 percent at the open in New York yesterday---and hit their highs [up 6 percent at 3:30 p.m.---and in the following forty-minutes the stocks gave up a third of their gains as the HUI finished up only 3.90%.

It was exactly the same chart pattern in the silver equities.  At their highs, they were up more than 7 percent until a thoughtful soul sold them down in the last forty-five minutes of trading, just like the gold stocks.  Nick Laird's Intraday Silver Sentiment Index closed up 4.82%.

I received an e-mail from reader Johan Kuster yesterday---and he pointed out the following: " When I look at the chart of GDXJ for the last 5 days, I noticed that there is high volume trading at the end of the day and EXACTLY at 3:59 the volume rises to the extreme. Today GDXJ was pushed down close to 3% in 1 minute thanks to somebody selling the stock. This looks like a criminal activity to me. What idiot would sell that amount of shares in 1 minute?"

It could be 'da boyz' or day traders.  But whoever they were, they weren't selling for maximum profits.  Nothing would surprise me, dear reader---and by now this sort of activity shouldn't surprise anyone.  It looked like the HUI and Silver 7 index suffered from a similar disease yesterday---and it seems to be cropping up more and more.  Here's the GDXJ chart from yesterday so you can see what he's referring to.

The CME Daily Delivery Report showed that only 1 lonely gold contract was posted for delivery within the Comex-approved depositories on Monday.

The CME Preliminary Report for the Thursday trading session showed that November open interest in gold increased by 5 contracts to 61 contracts---and November o.i. in silver is now at 102 contracts, down 33 contracts from yesterday because of delivery that was posted yesterday.

Not surprisingly, there was another withdrawal from GLD.  This time it was 96,113 troy ounces.  And as of 9:52 p.m. EST yesterday evening, there were no reported withdrawals from SLV.

Since yesterday was Thursday, Joshua Gibbons, the " Guru of the SLV Bar List," updated his website with the in/out movements over at iShares.com for the week ending at the close of business on Wednesday---and here is what he had to report.

" Analysis of the 05 November 2014 bar list---and comparison to the previous week's list:  1,952,482.9 troy ounces were added. No bars were removed or had a serial number change."

"The bars added were from Kazakhmys (0.5M oz), Shui Kou Shan (0.4M oz), Yunnan Copper (0.2M oz), and 8 others."

"The overallocated cannot be calculated, as the monthly withdrawal is factored in the bar list, but was not factored in to the daily iShares reports.  Missing from the bar list is the 2,073,283.6 withdrawal from Tuesday (which includes the approximately 150,000 troy ounce monthly expense withdrawal)."

The link to Joshua's website is here.

There was another sales report from the U.S. Mint yesterday.  They sold 6,500 troy ounces of gold eagles---and 1,500 one-ounce 24K gold buffaloes.  They didn't report selling any silver eagles, of course---and it remains to be seen if they produce any more this year, as the time to retool for the 2015 silver eagles is coming up hard.

Just as an aside here, I've heard reports from readers that the premiums on silver eagles have already gone up at their local bullion stores in the U.S.---and our supplier confirmed that, as of yesterday, one U.S. bullion producer has already raised prices across the board for their entire product line.

It was another busy day for in/out activity at the Comex-approved depositories on Wednesday.  In gold, 47,104 troy ounces were reported received---and 50,244 troy ounces were shipped out.  The 'in' activity was at Canada's Scotiabank---and the 'out' activity was at HSBC USA.  The link to the action is here.

In silver, nothing was reported received, but a very decent 937,957 troy ounces were shipped off to parts unknown---and the link to that activity is here.

China officially released their September gold import data via Hong Kong through regular channels on their Friday morning---and that enabled Nick Laird to update his charts.  I, along with other commentators, had given up using Hong Kong imports as a proxy for China's gold consumption.  That still may be the case, but here's the chart anyway.

It will be interesting to see how much gold they import through Hong Kong in October.

I have a lot of stories today, and a very decent number of them fall into the must read category---and I hope you have the time for them.  Of course---and as is always the case---the final edit is yours.

¤ The Wrap

There has been little to no net selling of real silver from any known source---and all the data indicate net buying or holding (Silver Eagles and ETF flows). The only selling of silver that can be confirmed is the selling and short selling by technical funds on the COMEX over the past few months. At a minimum of 50,000 contracts (250 million oz), the selling by no more than 40 speculative traders in the managed money category equals the entire world production of the primary silver miners.

It is not necessary to imagine unknown sources of silver selling when the US Government has openly certified that no more than 40 speculative traders have sold in a few months more than what the world’s primary silver miners produce in a year. Quite frankly, were it not for this certification, I couldn’t begin to explain this sell-off in silver or in any of the other CME metals. I’m not talking about predictions and speculation; I’m talking about the only explanation possible. - Silver analyst Ted Butler: 05 November 2014

All was quiet yesterday, except for the gentle price capping in gold during the New York session and, for a change, there were no new low price ticks set in any of the precious metals.

Here are the 6-month price charts for all four precious metals once again.

What's amazing in all of this is that we haven't heard anything except stony silence from either the World Gold Council or The Silver Institute.  Of course they and their members are all bought and paid for, so hearing nothing should not come as a total surprise.   They'd rather go bankrupt, or lose millions, than admit to the price management scheme, let alone do anything about it.

The only miner with gonads big enough to even broach the subject was Keith Neumeyer over at First Majestic Silver.  They're having their 3rd quarter conference call next Wednesday--and he might have more to say about it at that time.

And as I type this paragraph, the London open is about 15 minutes away.  Silver and gold, which the HFT boyz and their algorithms sold down to new lows around 2:30 p.m. Hong Kong time, have now recovered most of those losses, but are still down a bit from Thursday's close in New York.  Net gold volume is already north of 50,000 contracts---and silver's net volume is just over 12,000 contracts.

Platinum received the same treatment as gold and silver---and came within an eyelash of hitting a new low tick for this move down.  Palladium also got hit, but it still has about $20 to go before it sees a new low.

The dollar index peaked out around 88.17 just before 1 p.m. Hong Kong time, is now down 6 basis points as of this writing.

Today at 3:30 p.m. EST we get the latest Commitment of Traders Report for positions held at the close of Comex trading on Tuesday---along with the companion Bank Participation Report.  I'm just hoping that all the price/volume data from the Tuesday trading session will have been reported in a timely manner.  Too bad that none of the data from Wednesday will be in either report, as that was a monster capitulation day to the downside in all four precious metals.

I'll have all the data for you in tomorrow's column.

And as I hit the send button on today's column at 5:10 a.m. EST, I see that the rallies off the early afternoon lows in Far East trading weren't allowed to get far, as they all got capped at 9 a.m. GMT in London and, with the exception of silver, all are up a bit from yesterday's close in New York.

Net gold volume is now around 65,000 contracts---and silver's net volume is about 16,000 contracts.  It's obvious that most of today's volume so far was associated with the new low prices set in these two metals, as there hasn't been a lot of volume since I reported on them just before the London open.

The dollar index is back to unchanged.

Since today is Friday---and we've already set new lows in gold and silver in the thinly-traded Far East market earlier today, I'm not even going to hazard a guess as to what might happen in New York, as prices are now completely in the hands of JPMorgan et al---and their HFT buddies.

That's all I have for today---and I'll see you here tomorrow.

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