Market-Rigging Lawsuit Against London Gold and Silver Fix Banks Can Proceed

06 October 2016 — Thursday


Gold rallied six bucks or so by 1 p.m. in Tokyo on their Wednesday afternoon — and then wandered lower until a few minutes before the COMEX open.  It popped 5 bucks, but then got rolled over as JPMorgan et al went to work.  They set the low tick of the day around 1 p.m. in New York — and the subsequent rally was capped shortly before the COMEX close — and the gold price didn’t do much after that.

The high and low ticks were reported as $1,279.40 and $1,264.10 in the December contract.

Gold finished the Wednesday session at $1,266.50 spot, down $1.90 from Tuesday’s close.  Net volume was very decent at just over 183,000 contracts.161006gold

And here’s the 5-minute gold tick chart courtesy of Brad Robertson — and as is usually the case, the only volume that really mattered occurred either shortly before, during, or shortly after the COMEX trading session.  That was certainly the case on Wednesday.

The vertical gray line is 10:00 p.m. Denver time, midnight in New York — and noon China Standard Time [CST] the following day in Shanghai—and don’t forget to add two hours for EDT.  The ‘click to enlarge‘ is a must here.161006-5-minute-gold

In most respects the price action in silver was the same as it was in gold, with ‘da boyz’ setting the low [down/up] price tick shortly after 12:30 p.m. in New York.  It rallied a bit between 1:15 p.m. and 2:00 p.m. EDT, but was quietly sold lower for the rest of the thinly-traded after-hours market.

The high and low in this precious metal was reported by the CME Group as $18.04 and $17.585 in the December contract.

Silver was closed in New York yesterday afternoon at $17.73 spot, down 4.5 cents on the day.  Volume was very heavy once again at just under 71,500 contracts.161006silver

Here’s the 5-minute silver tick chart courtesy of Brad Robertson as well — and it requires no further embellishment from me.

As with the 5-minute gold chart above, the vertical gray line is 10:00 p.m. Denver time, midnight in New York — and noon China Standard Time [CST] the following day in Shanghai—and don’t forget to add two hours for EDT.  The ‘click to enlarge‘ is a must here as well.161006-5-minute-silver

The platinum price was handled by the powers-that-be in an identical fashion as it was on Monday and Tuesday — and a cursory glance at the Kitco chart below certainly shows that.  Like in silver, its low came shortly before 1 p.m. in New York — and the subsequent rally got snuffed out and rolled over at 2 p.m. EDT.  Platinum was closed at $975 spot, down 8 bucks from Tuesday’s close.161006platinum

Palladium rallied a few dollars in Far East trading — and made it almost to the $700 spot mark.  Then, starting at 2 p.m. China Standard Time, ‘da boyz’ showed up — and the low tick of the day was set minutes before the COMEX close.  From there it followed a mini version of what happened in both silver and platinum once the low tick was placed.  Palladium finished the Wednesday session at $674 spot, down a whopping 22 bucks on the day.161006palladium

The dollar index closed very late on Tuesday afternoon in New York at 96.14 — and sagged down to its 95.97 low tick of the day by shortly after 11 a.m. in Tokyo.  From there it chopped quietly higher until it blasted skyward at the London p.m. gold fix.  Its 96.31 high tick came a minute or so later, but by 1:35 p.m. EDT, it was back down to the 96.05 mark.  I would guess that ‘gentle hands’ were there to save it — and by 3:30 p.m. it back to the 96.17 mark — and it didn’t do a thing after that.  The index finished the day at 96.16 — and up 2 whole basis points from its close on Tuesday.161006intraday-gif

And here’s the 6-month U.S. dollar index for entertainment purposes only.161006-6-month-usd

The gold shares gapped up a percent and change at the open in New York yesterday morning, with their respective high ticks coming at the afternoon gold fix in London, which was 10 a.m. EDT.  From there they were sold back into negative territory, with their low ticks coming at gold’s low, which was 12:30 p.m. EDT.  By 2 p.m. they were back in positive territory to stay, as the HUI closed higher by 0.84 percent.161006hui

The silver equities traded in a very similar manner, except their respective rallies off the 1:00 p.m. low tick in silver, didn’t quite make it back into positive territory before the price got capped at 2 p.m. EDT.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 0.67 percent.  Click to enlarge if necessary.161006silver-7

The CME Daily Delivery Report for Day 4 of the October delivery month in gold showed that 212 gold and 4 silver contracts were posted for delivery within the COMEX-approved depositories on Friday.  There were six short/issuers, with the two largest being Goldman Sachs and ABN Amro with 165 and 25 contracts respectively.  Goldman’s contracts came out of their in-house trading account — and those at ABN Amro from their client account.  There were 8 long/stoppers.  JPMorgan stopped 113 contracts…109 for its client account, plus 4 for its own account.  Scotiabank stopped 60 for its own account — and Goldman stopped 22 for its client account.  The link to yesterday’s Issuers and Stoppers Report is here.

The CME Preliminary Report for the Thursday trading session showed that gold open interest in October declined by 1,302 contract, leaving just 385 contracts left, minus the 212 posted in the above paragraph.  Tuesday’s Daily Delivery Report showed that 1,338 contracts were actually posted for delivery today, so that means that another 1,338-1,302=36 gold contracts were added to the October delivery month yesterday.  Silver o.i. in October fell by 12 contracts, leaving 85 still around, minus the 4 contracts mentioned in the previous paragraph.  Tuesday’s Daily Delivery Report showed that 27 silver contracts were actually posted for delivery today, so that means that another 27-12=15 silver contracts were added the October delivery month.

There was a small withdrawal from GLD yesterday, as an authorized participant took out 10,386 troy ounces, which sort of looked like a fee payment of some kind, albeit a healthy one.  There was also a fairly hefty withdrawal from SLV, as an a.p. removed 1,898,420 troy ounces.

The folks over at Switzerland’s Zürcher Kantonalbank updated their website with the goings-on in both their gold and silver ETFs as of the close of business on Friday, September 30 — and this is what they had to report.  They added 6,145 troy ounces of gold, plus 4,887 troy ounces of silver.

Much to my surprise, there was another sales report from the U.S. Mint — and it was more than decent.  They sold 10,500 troy ounces of gold eagles — 2,500 one-ounce 24K gold buffaloes — plus another 500,000 silver eagles.

In the first three days of October the mint has sold 21,000 troy ounces of gold eagles — 4,500 one-ounce 24K gold buffaloes — and 1,030,000 silver eagles.  As I said in yesterday’s column, this is the best start to a month since May — and that’s even more the case with Wednesday’s big sales added in.

There was some movement in gold over at the COMEX-approved depositories on Tuesday.  They reported receiving 24,264 troy ounces — and shipped out 10,266 troy ounces.  All of the ‘in’ activity was at Brink’s, Inc. — and the ‘out’ activity was split up between JPMorgan and Scotiabank.  The link to that activity is here.

It was another big day in silver, as 1,049,880 troy ounces were reported received — and all of that went into Canada’s Scotiabank.  There was 121,877 troy ounces shipped out, with about two thirds of that coming out of Scotiabank as well, with the rest from HSBC USA and Brink’s, Inc.  The link to that action is here.

It was reasonably quiet over at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday, as only 122 were reported received — and 558 were shipped out the door for parts unknown.  All of the activity was at Brink’s, Inc. as per usual — and the link to that, in troy ounces, is here.

Here’s are three more charts that Nick passed around on Tuesday evening, but I already had three of his charts in yesterday’s column, so I though it safe to leave these ones for today.  They show gold imports and exports for the E.U. updated with the most current data, which is July.  So in the first bar chart, the bar on the far right for 2016 is obviously only data up to and including July.  The last two charts show the import/exports into the E.U. zone for July only.  The Click to Enlarge feature works wonders on all three charts.161006eu-no-1


And here are two more charts that Nick passed around yesterday evening — and since I have a story about Perth Mint sales in the Critical Reads section below, it’s appropriate that I post them in today’s column.  They show Perth Mint gold and silver bullion coin sales with the September sales month figures added in — and they certainly are impressive.   The Click to Enlarge feature is useful here as well.161006perth-mint-gold


I have an average number of stories for you today — and the final edit is all yours.


IMF says a third of banks in top countries are too weak to survive

A third of biggest banks in the world’s richest countries are so weak their problems could not be solved even by a recovery and rising interest rates, the International Monetary Fund said in a new report released Wednesday.

About a third of European banks, with $8.5 trillion in assets, and a quarter of U.S. banks, with $3.2 trillion in assets, are in this too-weak-to-recover category, the IMF said.

This suggests the need for fundamental changes in both bank business models and system structure to ensure a vibrant and healthy banking system,” the IMF said in its update on global financial stability.

Overall, bank balance sheets in general are stronger than they were before the financial crisis. But weak bank profitability has emerged as a key challenge that won’t be solved by a cyclical recovery.

This is certainly no surprise.  This story is now headlined “Forget too-big-to-fail, new concern is that many banks are too-weak-to-survive” — and I thank Scott Linn for sending it along.  Another link to it is here.  There was a Bloomberg story about this as well — and it’s headlined “Economic Recovery Won’t Be Enough for 25{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of Banks, IMF Says” — and that article comes courtesy of Swedish subscriber Patrik Ekdahl.

The IMF is worried about the world’s $152 trillion debt pile

Gross debt in the non-financial sector has more than doubled in nominal terms since the turn of the century, reaching $152 trillion last year, and it’s still rising, the International Monetary Fund said. The figure includes debt held by governments, non-financial firms, and households.

Current debt levels now sit at a record 225 percent of world gross domestic product, the IMF said today in its semi-annual Fiscal Monitor, noting that about two-thirds of the liabilities reside in the private sector. The rest of it is public debt, which has increased to 85 percent of GDP last year from below 70 percent.

Slow global growth is making it difficult to pay off the obligations, “setting the stage for a vicious feedback loop in which lower growth hampers deleveraging and the debt overhang exacerbates the slowdown,” the Washington-based fund said.

This Bloomberg news item put in an appearance on their Internet site at 7:45 a.m. Denver time on Wednesday morning — and I found it embedded in a GATA release.  Another link to this story is here.

Obama Warned to Defuse Tensions With Russia, “Unintended Consequences Likely to Be Catastrophic

A group of ex-U.S. intelligence officials is warning President Obama to defuse growing tensions with Russia over Syria by reining in the demonization of President Putin and asserting White House civilian control over the Pentagon.


FROM: Veteran Intelligence Professionals for Sanity


We write to alert you, as we did President George W. Bush, six weeks before the attack on Iraq, that the consequences of limiting your circle of advisers to a small, relatively inexperienced coterie with a dubious record for wisdom can prove disastrous. Our concern this time regards Syria.

We are hoping that your President’s Daily Brief tomorrow will give appropriate attention to Saturday’s warning by Russia’s Foreign Ministry spokesperson Maria Zakharova: “If the US launches a direct aggression against Damascus and the Syrian Army, it would cause a terrible, tectonic shift not only in the country, but in the entire region.

Speaking on Russian TV, she warned of those whose “logic is ‘why do we need diplomacy’ … when there is power … and methods of resolving a problem by power. We already know this logic; there is nothing new about it. It usually ends with one thing – full-scale war.

This item was posted on the Zero Hedge website at 5:03 a.m. on Wednesday morning EDT — and I thank Ellen Hoyt for pointing it out.  It’s certainly a must read for any serious student of the New Great Game — and another link to this article is here.

Principals Meeting on “Kinetic” Option in Syria — John Batchelor Interviews Washington Post‘s Josh Rogin

U.S. military strikes against the Assad regime will be back on the table Wednesday at the White House, when top national security officials in the Obama administration are set to discuss options for the way forward in Syria. But there’s little prospect President Obama will ultimately approve them.

Inside the national security agencies, meetings have been going on for weeks to consider new options to recommend to the president to address the ongoing crisis in Aleppo, where Syrian and Russian aircraft continue to perpetrate the deadliest bombing campaign the city has seen since the five-year-old civil war began. A meeting of the Principals Committee, which includes Cabinet-level officials, is scheduled for Wednesday. A meeting of the National Security Council, which could include the president, could come as early as this weekend.

Last Wednesday, at a Deputies Committee meeting at the White House, officials from the State Department, the CIA and the Joint Chiefs of Staff discussed limited military strikes against the regime as a means of forcing Syrian dictator Bashar al-Assad to pay a cost for his violations of the cease-fire, disrupt his ability to continue committing war crimes against civilians in Aleppo, and raise the pressure on the regime to come back to the negotiating table in a serious way….

This 9:12 minute audio interview was conducted on Tuesday — and I thank Larry Galearis for finding it for us.  It was posted on the Internet — and another link to it is here.

Brexit Mastermind Farage Resumes Leadership of UKIP as Replacement Quits After 18 Days

Just 18 days after she took the mantle of running the U.K. Independence Party, Diane James has stepped down – citing personal reasons for her decision – leaving Nigel Farage stepping back in as ‘acting leader’. But, as SkyNews reports, MEP Farage ruled out re-applying on a permanent basis for what he called a “rotten job“.

Diane James, who had promised to help get UKIP ‘race ready’ for the election, became the party’s first female leader on 16 September after a landslide victory in the leadership contest.

In a statement, she said it was with “great regret” and the decision was down to “personal and professional reasons“.

The personal reasons are understood to be related to her husband being unwell, said Sky’s chief political correspondent Jon Craig.

This Zero Hedge article showed up on their Internet site at 12:02 p.m. EDT yesterday afternoon — and I thank James Gullo for bringing it to our attention.  Another link to it is here.

E.U. Readies Plan for Clearing Crisis, the New Too-Big-to-Fail

The European Union plans to give authorities sweeping powers to tackle ailing derivatives clearinghouses to prevent their failure from wreaking havoc throughout the financial system.

Draft E.U. legislation seen by Bloomberg sets out rules on saving or shuttering clearinghouses that would apply to firms such as London-based LCH. The proposals cover everything from the creation of resolution authorities to the powers they would have when winding a company down, including writing down shares, debt and collateral.

Having forced most clearing to go through central counterparties to manage risk in the financial system, the E.U. will come out with recovery and resolution proposals by year-end.  Clearing has come into focus after emerging as a pawn in the post-Brexit battle for London’s financial-services industry.

If we are going to rely more on CCPs, we need to have a clear system in place to resolve them if things go wrong,” Valdis Dombrovskis, the E.U.’s financial-services chief, said last month.

This news story was posted on the Internet site at 3:04 a.m. MDT on Wednesday morning — and I thank Patrik Ekdahl for sharing it with us.  Another link to this article is here.

Russia sends S-300 advanced missile system to Syria, U.S. runs out of options

I would say that I am personally somewhat baffled by some of the alarm expressed over the U.S. decision to pull out of further talks on implementing the Kerry-Lavrov agreement.  Since the agreement has completely collapsed I for once agree with the U.S. that there is little point continuing to talk about implementing it.

The U.S. is not saying that it is suspending all diplomatic contact with Russia over Syria, as some commentators appear to think.  On the contrary diplomatic and military contacts between the U.S. and Russia over Syria are continuing as before.

As I have said previously, given the fanatical nature of some of the people in Washington it is impossible to be sure that a dangerous escalation will not happen.  Advocates of imposing a no-fly zone and of attacks on the Syrian military and by extension on the Russian military in Syria (eg. Senators McCain and Lindsey Graham and General David Petraeus) are certainly still there.

However the risks seem so wildly out of proportion to the potential gains that it is difficult to believe that such things will happen, and the Reuters report appears to confirm that these madly dangerous ideas are continuing to be ruled out.

The reality is that on any sane assessment it is the Russians who now hold all the cards in Syria.

This opinion piece by Alex Mercouris appeared on Inernet site on Tuesday — and it comes to us courtesy of Larry Galearis.  Another link to this commentary is here.

What’s behind Ankara’s ‘deafening silence’ on Aleppo?

In the past, Turkish President Recep Tayyip Erdogan never missed an opportunity to thrash Syrian President Bashar al-Assad, calling him the “brutal dictator who kills his own people.” These days, however, Erdogan has been noticeably low-key in his criticism of the Syrian leader as his regime pounds Aleppo and, according to independent observers, commits war crimes. It is not difficult to fathom the reason behind Ankara’s reticence to take a tough line in keeping with its stance against such attacks in the past: Russia is also involved in the brutal operation against Aleppo.

During an Oct. 1 address to parliament marking the opening of the new legislative year, Erdogan only touched on the situation in Aleppo once in passing, without mention of anyone specifically while laying blame in general terms on the West.

Those countries and societies that are merely watching the brutality as every innocent life is extinguished among the ruins of Aleppo will have to account for this in the face of history,” Erdogan said. He made no other reference to Aleppo although it was the topic dominating world headlines.

This story showed up on the Internet site on Tuesday — and I thank Roy Stephens for sending it along.  Another link to it is here.

40 Million Russians to Take Part in “Nuclear Disaster” Drill, Days After U.S. General Warns of War With Moscow

As relations between Russia and the U.S. disintegrate as a result of the escalating proxy war in Syria, which today culminated with Putin halting a Plutonium cleanup effort with the U.S., shortly before the US State Department announced it would end negotiations with Russia over Syria, tomorrow an unprecedented 40 million Russian citizens, as well as 200,000 specialists from “emergency rescue divisions” and 50,000 units of equipment are set to take part in a four day-long civil defense, emergency evacuation and disaster preparedness drill, the Russian Ministry for Civil Defense reported on its website.

According to the ministry, an all-Russian civil defense drill involving federal and regional executive authorities and local governments dubbed “Organization of civil defense during large natural and man-caused disasters in the Russian Federation” will start tomorrow morning in all constituent territories of Russia and last until October 7. While the ministry does not specify what kind of “man-caused disaster” it envisions, it would have to be a substantial one for 40 million Russians to take part in the emergency preparedness drill. Furthermore, be reading the guidelines of the drill, we can get a rather good idea of just what it is that Russia is “preparing” for.

The website adds that “the main goal of the drill is to practice organization of management during civil defense events and emergency and fire management, to check preparedness of management bodies and forces of civil defense on all levels to respond to natural and man-made disasters and to take civil defense measures.” Oleg Manuilov, director of the Civil Defence Ministry explained that the exercise will be a test of how the population would respond to a “disaster” under an “emergency” situation.

This story appeared on the Zero Hedge website at 1:37 p.m. EDT on Tuesday — and I thank Roy Stephens for his second offering in today’s column — and another link to it is here.

U.K. consumers snap up physical gold after price slides under £1,000 per troy ounce

Physical gold demand in London jumped after this week’s price drop, dealers said today, as consumers were tempted back to the market by the metal’s technically-driven slide through £1,000 pounds an ounce.

Online gold trading platform saw its heaviest trading day on Tuesday since its all-time record on June 24, the day of the U.K. referendum result on European Union membership, head of research Adrian Ash said.

Other bullion dealers also reported higher sales following the fall, sparked by a bounce in the dollar that pushed the metal though key technical support at $1,300 an ounce.

We have an awful lot of clients who were waiting for a pullback in gold, so the phones have been busy here,” Sharps Pixley Chief Executive Ross Norman said. “We’re close to £1,000 an ounce. People want to get in at these levels.

This gold-related news item put in an appearance on the Internet site at 3:30 p.m. BST on their Wednesday afternoon, which was 10:30 a.m. in New York — EDT plus 5 hours.  I found this story on the Internet site — and another link to it is here.

Perth Mint Silver Sales Rebound in September

September Perth Mint silver sales of 1,031,858 ounces were up 174{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} from 376,461 ounces sold in August and up 49{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} from July sales of 693,447 ounces.

Silver sales at The Perth Mint in September were down 71{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} year over year from September 2015 sales of 3,530,000.

Perth Mint: Higher sales in September reflect “significant demand for our Australian Lunar Gold and Silver Coin Series II – 2017 Year of the Rooster.

This worthwhile silver-related story was posted on the Internet site yesterday — and I thank Roy Stephens for his final contribution to today’s column — and another link to this article is here.

FLASH: Market-rigging lawsuit against London gold fix banks can proceed

The financial news internet site Market Slant reports that the federal judge handling the class-action anti-trust lawsuit against the banks that operated the daily London gold price fixing system from 2006 to 2012 has ordered the lawsuit to proceed, denying the defendants’ request for dismissal.

Market Slant says the judge’s decision cites Deutsche Bank’s confession to gold market manipulation in collusion with other bullion banks.

As the above paragraphs of introduction state, the story about this was posted on the Internet site yesterday — and its another story that I found on the Internet site.   And why JPMorgan’s name isn’t on the list for this lawsuit is unknown to me.  There has to be a good reason, because as everyone and his dog knows, they are [as Ted Butler puts it] “the King Fish silver short” on Planet Earth…with Canada’s Scotiabank in No. 2 spot.  Another link to it is here.  The Zero Hedge spin on this is headlined “In Major Victory For Gold and Silver Traders, Manipulation Lawsuit Against Gold-Fixing Banks Ordered to Proceed” — and that comes to us courtesy of Richard Saler.  According to the ZH website, their article has already had 44,000+ reads since it was posted on their website at 2:45 p.m. EDT on Wednesday afternoon.

Judge’s decision in gold market-rigging case is an invitation to journalism

Regarding disclosure today that the class-action anti-trust lawsuit against the London gold price-fixing banks, brought in U.S. District Court in Manhattan, has been allowed to proceed:

1) This is only a finding that there is enough evidence to continue the lawsuit, not a finding of market manipulation.

Still, it may be very damaging to the bullion bank defendants because it clears the way for discovery and deposition — that is, clears the way for compelling the bullion banks to produce documentation and give testimony prior to trial. I have always suspected that if any market-manipulation lawsuit got past summary judgment dismissal, as this lawsuit apparently has done, the defendants would offer a lot of money to settle the lawsuit privately rather than give the world a look at their business practices. Such a look might risk incriminating many other institutions and government agencies and risk revealing more offenses.

Since this lawsuit is a class action and the nominal plaintiffs are numerous, maybe there is less chance that they can be bought off in exchange for secrecy. But at the moment there is no guarantee that the public will ever get a full accounting of any misconduct that has been going on in the gold market.

2) At least the decision to let the suit proceed should awaken the monetary metals mining industry to the issue of gold market manipulation. The industry has been catatonic, apparently too scared of the bullion banks and its own lending banks and too scared of the governments and central banks standing behind them. The industry still must decide whether it wants to die on its knees from price suppression or risk dying on its feet by struggling for free and transparent markets.

3) The decision also should awaken mainstream financial news organizations and financial market analysts to the gold market rigging issue. Gold market rigging — that is, gold price suppression — is the prerequisite for the rigging of ALL markets and it has facilitated the destruction of market economies everywhere. It has been perpetrated largely as a matter of the longstanding but surreptitious policies of Western governments, as documented by GATA.

Yet as far as GATA can determine, no mainstream financial news organizations or even gold market analysts have ever tried putting to any central bank a critical question about its surreptitious involvement in the gold market. The decision is another reason for news organizations and market analysts to attempt journalism.

Chris Powell’s day job is senior editor at the Manchester, Connecticut newspaper the Journal Enquirer, so his interest in this case from a journalistic perspective is completely understandable.  This commentary showed up on the Internet site yesterday — and it’s definitely worth reading.  Another link to it is here.


I was out at the pond the other day — and when I stepped out of the car, all I could initially see was this row of necks and heads sticking above the edge of the asphalt, so I took a shot, because it looked interesting.  When I finally got to the other side of the road I was greeted by the rest of the flock — and because I had the 400mm strapped on the camera, depth of field is always an issue — and very noticeable here.  The ‘Click/Double-Click to Enlarge‘ feature is very useful with both these shots.161006-2016-10-02-1



JPMorgan et al closed all four precious metals at new lows yesterday, but even more important than that, they set new intraday lows as well, so the salami slicing continues — and was the reason for the high volume in both gold and silver yesterday.

Undoubtedly there were further decreases in the Commercial net short position after yesterday’s price action but, as Ted said in his mid-week column yesterday, the improvements during the last two days don’t even come close to resolving the grotesque and obscene short positions in the COMEX futures market in either silver or gold.  But with three of the four precious metals within an eyelash of being oversold, Ted said that there was always the possibility of a short-term rally to relieve that oversold condition, before ‘da boyz’ continue the salami slicing down the downside.  I agree with that.

So we wait some more.

Here are the 6-month charts for all four precious metals, so you can see yesterday’s price action for yourself.161006-6-month-gold


And as I type this paragraph, the London open is less than ten minutes away — and I see that the gold price hasn’t done much of anything in Far East trading on their Thursday — and is currently down $1.10 an ounce.  Silver is up 6 cents an ounce — and platinum and palladium are up a buck apiece.

Net HFT volume is a hair under 15,000 contracts, which is fumes and vapours these days — and that number in silver is sitting at 6,700 contracts, which is pretty light as well.  The dollar index hit its 96.10 low in the first hour of trading in New York on their Wednesday evening — and has been chopping quietly higher since.  It’s currently up 8 basis points as London opens.

Tomorrow is the start of the 3-day IMF soirée — and I’m not sure what to expect from that, but with central banks all out of aces, except for the gold card, I’ll be watching for anything they might have to say about Special Drawing Rights now that China is part of the mix.  I’m also wondering how much realpolitik will be a factor, as the U.S. is at ‘daggers drawn’ with Russia and China currently.  I’d love to be a fly on the wall at some of the private meetings that will certainly be held away from prying eyes and ears.

Using yesterday’s price activity as a proxy for today, it won’t surprise me if we have another down trading session.  However, as Ted said, there could be rallies — and even if there are, that just pushes the resolution of the internal structure of the COMEX futures market even further down the road.

And as I post today’s column on the website at 4:00 a.m. EDT, I see that gold has been trending lower starting just before the London open — and is currently down $2.90 per ounce.  Silver, which had been up 6 cents an hour ago, is now down 7 cents.  The powers-that-be are working over platinum and palladium as well, with the former down 4 bucks — and the latter down 2.

Net HFT gold volume is just under 20,000 contracts, which is very light — and that number in silver is just under 9,100 contracts.  The dollar index continues to chop quietly higher — and is up 17 basis points as I hit the ‘publish’ button.

See you here tomorrow.


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