How Long Will the Gold Market Be Controlled By Paper Gold Non-Transactions?

07 October 2016 — Friday


Gold’s high of the day, such as it was, came at 9 a.m. Tokyo time on their Thursday morning — and then it slid to its London low around 9 a.m. BST.  By 12:40 BST– and thirty minutes before the COMEX open, the gold price was rolled over — and JPMorgan et al took it lower until around 11:15 a.m. in New York.  It rallied about 6 dollars during the next hour, before getting rolled over once again, with the low tick of the day coming shortly after 2 p.m. EDT in the thinly-traded after-hours market.  Once that low tick was in, it chopped quietly higher into the 5:00 p.m. close.

The high and low ticks were reported by the CME Group as $1,271.60 and $1,251.80 in the December contract.

Gold finished the Thursday session at $1,255.20 spot, down $11.30 from Wednesday.  Net volume was pretty heavy at just under 163,000 contracts.161007gold

And here’s the 5-minute gold tick chart courtesy of Brad Robertson.  Volume was mostly background until the gold price was turned lower about 12:40 p.m. in London, which is 05:40 a.m. Denver time on the chart below.  At that juncture the volume picked up substantially and really didn’t trail off to background levels until after 2 p.m. MDT, which was 4 p.m. in New York.

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.161007-5-minute-gold

The price action in silver was mostly similar to gold’s, but the rally off silver’s 11:15 a.m. EDT low tick got stopped in its tracks within a few minutes — and after that, the price chopped quietly sideways for the rest of the Thursday session.

The high and low ticks in this precious metal were reported as $17.88 and $17.14 in the in the December contract.

Silver was closed in New York yesterday at $17.285 spot, down 44.5 cents on the day.  Net volume was way up there at a hair under 65,000 contracts.161007silver

And here’s the 5-minute silver tick chart from Brad as well.  The real volume kicked in at 6:20 a.m. Denver time on this chart, which was the 8:20 a.m. EDT COMEX open.  Volume was back to mostly background levels by 11:30 a.m. MDT, which was the COMEX close.

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.161007-5-minute-silver

The platinum price chopped around a few dollars either side of unchanged until shortly before Zurich opened at 10 a.m. Europe time on their Thursday morning.  Then it was a slow, quiet, choppy decline to its $959 spot low tick, which came very late in after-hours trading in New York.  It recovered a couple of bucks into the close from there, finishing the Thursday session at $962 spot — and down another 13 dollars.161007platinum

Palladium also traded more or less sideways until Zurich opened — and then experienced the same quiet sell-off, with the low tick coming shortly before 10:30 a.m. in New York.  It gained back 10 dollars by noon, but that was it — and the price didn’t a lot after that.  Palladium was closed at $666 spot, down 8 bucks from Wednesday.161007palladium

The U.S. dollar index closed very late on Wednesday afternoon in New York at 96.16 — and was in rally mode almost from the time that trading began at 6:00 p.m. EDT on Wednesday evening.  The 96.77 high tick came a few minutes before 3 p.m. in New York yesterday afternoon — and it sold off about ten basis points from there into the close.  The index finished the day at 96.69 — up 53 basis points on the day.161007intraday-gif

And here’s the 6-month U.S. dollar index chart so you can keep up with the on-going rally in the world’s ‘reserve currency’.161007-6-month-usd

The gold stocks gapped down about 3 percent at the open — and from there they rallied to their respective high ticks at the London p.m. gold fix.  They sold off from there — and chopped mostly sideways for the rest of the day.  But starting at 3:00 p.m., some ‘bottom fishing’ occurred during the last hour of trading.  The HUI closed down 2.91 percent.161007hui

The silver equities traded in a virtually identical manner, complete with the 1-hour ‘bottom fishing’ episode at the end of the day.  Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 2.23 percent.  Click to enlarge if necessary.161007silver-7

Considering how badly that gold and silver got beat up, I though that the share prices hung in there pretty well, all things considered.

The CME Daily Delivery Report showed that only 3 gold and 9 silver contracts were posted for delivery within the COMEX-approved depositories on Monday.  These amounts aren’t material — and there was nothing in the report worth mentioning anyway.

The CME Preliminary Report for the Thursday trading session showed that gold open interest in October declined by 135 contracts, leaving 251 still left, minus the 3 contracts mentioned just above.  Wednesday’s Daily Delivery Report showed that 212 gold contracts were actually posted for delivery today, so that means that 212-135=77 gold contracts were added to the October delivery month yesterday.  Silver o.i. in October rose by 11 contracts, leaving 96 contracts still open, minus the 9 contracts mentioned in the previous paragraph.  Wednesday’s Daily Delivery Report showed that 4 silver contracts were actually posted for delivery today, so that means that an additional 4+11=15 silver contracts were added to the October delivery month.

Much to my surprise, there were no reported changes in GLD yesterday — and as of 6:44 p.m. EDT yesterday evening, there were no reported changes in SLV, either.  But it’s a good bet that there will be some big ones soon…today perhaps.

For the fourth day in a row that there was a sales report from the U.S. Mint.  They sold 4,000 troy ounces of gold eagles — and another 325,000 silver eagles.  I’m impressed!

There wasn’t a lot of movement in gold over at the COMEX-approved depositories on Wednesday.  There was 11,588 troy ounces received —and only 4,536 troy ounces shipped out.  The ‘in’ activity was at Brink’s, Inc. — and the ‘out’ activity was at HSBC USA.  I shan’t bother linking these small changes.

It was a bit quieter in silver as well.  Only 601,855 troy ounces were reported received — and virtually all of that went into the CNT depository.  Nothing was shipped out.  The link to that activity is here.

It was a bit busier over at the COMEX-approved gold kilobar depositories in Hong Kong on their Wednesday, as they received 1,131 of them — and shipped out 1,437.  And with the exception of 43 kilobars received at Loomis International, the rest of the in/out activity was at Brink’s, Inc. as per usual.  The link to that, in troy ounces, is here.

I have very few stories for you today — and I hope you’ll find a couple in the list below that you like.


Editorial:  “The Fed in Danger” — The New York Sun

How will Donald Trump react in the remaining debates if Secretary Clinton comes at him in respect of the Federal Reserve? We ask because this is suddenly becoming one of the hottest questions. “Trump’s mudslinging puts the Fed in danger,” frets the headline over today’s editorial in the big Japanese financial newspaper, the London Financial Times. It’s alarmed that Mr. Trump is warning of a “false economy” created by the central bank’s increasingly desperate effort to get us out of the Great Recession by buying up the Obama administration’s debt.

Talk about blaming the messenger. The fact is that warnings about the Federal Reserve’s reckless expansion of its balance sheet, quantitative easing, zero interest rate policy, attempts to jaw-bone the economy back into action, and open contempt for the Congress, all pre-date the accession of The Donald to the leadership of the Republican Party. Not to take anything away from Mr. Trump. He won the nomination partly because he recognizes that the Fed has been part of the problem, which puts him ahead of our intelligentsia, if not the Congress.

This is underscored in the latest dispatch on this head from Bloomberg’s news wire. It reports that the Federal Reserve “may be headed for a shakeup regardless of who wins the 2016 election.” It publishes an astonishing chart showing the collapsing confidence in the Fed during the span from Alan Greenspan through Ben Bernanke to Janet Yellen. It quibbles somewhat about the causes of this (Mr. Greenspan “was more well known,” it reckons). But it also recognizes that, while Mrs. Clinton mightn’t be ready for “radical change,” contra Mr. Trump, things are moving quickly on Capitol Hill.

This very interesting editorial, which comments on the gold standard at the end, put in an appearance on the Internet site on Wednesday — and I thank reader Fred Ehrman for pointing it out.  Another link to this commentary is here.

The number of companies going public hasn’t been this low since the financial crisis

During the first three quarters of this year, the number of initial public offerings stood at 73, which was a 45{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} decline from the same time period a year ago,” said a note from Birstingl. “This marked the lowest IPO count through the first three quarters of a year since 2009, when only 33 firms went public.”

Typically, companies delay IPOs until the market is smoother, so the shaky start to the year and turbulence around the UK’s vote to leave the European Union may have out some companies off.

Additionally, companies set an estimated price range for their shares a few weeks out from the IPO date, and not many companies have been able to price above those ranges this year.

The percentage of initial public offerings through the end of Q3 that were priced above their initial range stood at 13.2{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e},” wrote Birstingl. “If this holds for the rest of the year, it would mark the lowest percentage since 2010.”

This news item was posted on the Internet site at 2:45 p.m. on Wednesday afternoon, but the time zone isn’t stated.  I thank Swedish subscriber Patrik Ekdahl for sending it our way — and another link to this story is here.

Struggling Sears may sell part of its business, and Husqvarna is one of the potential buyers

Sears Holdings has received a number of bids for its Craftsman tool business and the stock is soaring, according to Bloomberg.

The report said that Stanley Black & Decker and Hong Kong-based Techtronic Industries have made bids for the business based on sources close to the matter.

The brand may be worth $2 billion according to the Bloomberg report, and other businesses that have not bid yet — including Apex Tool Group and Sweden-based Husqvarna — are looking into bids.

Sears has been in trouble for some time now, bleeding profit and shutting down stores. The sale of its assets has been rumored for a few months with the company also exploring sales of Kenmore home appliances and DieHard car batteries.

The above four paragraphs are all there is to this brief article that showed up on the Internet site at 2:37 p.m. on Wednesday afternoon — and it’s the second contribution in a row from Patrik Ekdahl.

The European Union: The Coming Collapse of the World’s Biggest Economy

The stage is set for the collapse of the world’s largest economy—the European Union. The trigger: Italy’s exit from the euro currency.

The Financial Times recently put it this way:

“An Italian exit from the single currency would trigger the total collapse of the eurozone within a very short period. It would probably lead to the most violent economic shock in history, dwarfing the Lehman Brothers bankruptcy in 2008 and the 1929 Wall Street crash.”

If the FT is even partially right, it means we’re looking at a possible stock market crash of historic proportions. It could devastate anyone with a brokerage account. But it could also present enormous opportunities to profit.

Here’s how it could happen…

With emphasis on the word “could”, of course.  This commentary by senior editor Nick Giambruno showed up on the Internet site yesterday — and another link to it is here.

Tales of the New Cold War: Options on the Syria Table — John Batchelor Interviews Stephen F. Cohen

As the geopolitical world destabilizes, the few sources of objectivity, like the John Batchelor Show, become increasingly vital to us all, and this week’s podcast is no exception. Batchelor begins with the collapse of the diplomatic relationship between Russia and Washington in Syria. Russia is furious as it watches Turkey resupply advanced NATO weaponry to the terrorists in Aleppo. Again an American “no fly zone” is being discussed in Washington. Concurrently President Obama is planning to visit Iran and Victoria Nuland (State Department) is in discussion in Brussels with European allies and thence on to Moscow to try to reassure Russia about the Ukrainian situation. All of these events are fraught with more failure and not likely to improve a peace scenario, says Batchelor, and he asks whether there are any solutions out there? Cohen’s answer is not reassuring; he sees the recent failure in Syria is the first major failure in the first effort towards détente – amongst a long list of failures that have stretched over decades. The end result is a new (recognized) proxy war in Syria. In Russia, Cohen continues, war preparations are ordered by Putin (civil defence exercises); in Washington, we hear more anti Russian main stream media histrionics and talk of more sanctions.

At this time White House discussions are about the question of whether to bomb Assad. This would certainly start a war with Russia according to Gen. Joseph Dunford (Chairman of the United States Joint Chiefs of Staff), and Cohen states that the “ugly truth” in the Syrian matter is that Washington refuses to give up on removing Assad and it is using terrorists as its means; Russia, on the other hand has a policy of destroying these terrorists and keeping the legitimate government in Damascus. As such both countries have directly opposite goals. And Cohen is horrified that when the Department of Defence sabotaged the ceasefire against the president’s cooperation policy, it created a constitutional crisis that was not even discussed! This last point emphasizes the profound changes in American political realities and one could argue that government institutions are not functioning well anymore – even for those in the U.S. government.

The resupply of NATO weapons to the terrorists (ISIS) continues, and (now out in the open) Washington has threatened Russia with an Article 5 declaration if Russia attacks them. Given that an Article 5 is not allowed if the country involved (in this case Turkey) is there illegally (it is), Russia must be questioning how much legality even enters into the discussion anymore. Batchelor also delivers a bombshell in that the present ISIS forces are a complete creation of the Turkish Secret Police! He also states that Turkey’s Erdogan has promised Obama to “deliver Assad”, and that puts Turkey in a potential war scenario with Russia. So the war situation is vastly more complicated and dangerous than ever. Cohen mostly agrees and proceeds to explain how these events have delivered political setbacks to the various fronts in the NCW (New Cold War). Washington, he goes on, has backed itself into a corner in Syria of either doing nothing more or going to war. Is this a goal or is it a product of lack of vision?

There have been huge changes in one week and most of them very dangerous. From my point of view the Syrian situation can result in a general war between Russia, Turkey and Washington if: Turkey attacks Assad’s forces, Russia attacks NATO supply lines to ISIS, Washington orders a no fly zone and attacks Assad, or Russia orders a no fly zone to protect Assad (assume Assad is attacked by Turkey or US forces). The most likely of the above is Erdogan attacking Assad’s forces at the behest of Washington and expecting the NATO Article 5 umbrella for protection. This should not be possible given the illegality of Turkey’s actions, but we should recall that Washington is essentially spreading anarchy in global affairs to further its hegemonic ambitions. One can only hope that European members of NATO will rebel and use the legality of the event as an excuse to disobey Washington. As Cohen states we are at a point of danger equal to the Cuban missile Crisis. How real is the risk of a war with Russia? The chaos in the M.E. is a described in a leaked US policy decision first made public by retired General (US) Wesley Clark after 9/11 wherein the Pentagon listed 7 countries to be marked for regime change in the region. It included Syria. But there are no strong strategic need for the US to have destroyed any of them except as a means to increase the security environment for Israel and (locally) pipeline/energy politics for the Saudis and their Sunni neighbours. But ISIS is now a threat to Israel as well. And war with Russia now seems to have become the motive for continuing the Syrian War.

Because I don’t have all that many stories — and the situation is so serious, I’m posting the Stephen F. Cohen interview in today’s column, but will post it in Saturday’s column as well, if you don’t have the time for it at the moment.  I thank Ken Hurt for the link but, as always, the largest THANK YOU of all goes to Larry Galearis for excellent executive summary.  It’s certainly a must listen, even if you’re not a serious student of the New Great Game.  And if you don’t listen to the interview, you should at least read the above.  It was posted on the Internet site on Tuesday — and another link to it is here.

Russian options against a U.S. attack on Syria — The Saker

The tensions between Russia and the USA have reached an unprecedented level. I fully agree with the participants of this CrossTalk show – the situation is even worse and more dangerous than during the Cuban Missile Crisis. Both sides are now going to the so-called “Plan B” which, simply put, stand for, at best, no negotiations and, at worst, a war between Russia and the USA.

The key thing to understand in the Russian stance in this, an other, recent conflicts with the USA is that Russia is still much weaker than the USA and that she therefore does not want war. That does not, however, mean that she is not actively preparing for war. In fact, she very much and actively does. All this means is that should a conflict occur, Russia you try, as best can be, to keep it as limited as possible.

The main reason why we can expect the Kremlin to try to find asymmetrical options to respond to a U.S. attack is that in the Syrian context Russia is hopelessly outgunned by the U.S./NATO, at least in quantitative terms. The logical solutions for the Russians is to use their qualitative advantage or to seek “horizontal targets” as possible retaliatory options. This week, something very interesting and highly uncharacteristic happened: Major General Igor Konashenkov, the Chief of the Directorate of Media service and Information of the Ministry of Defence of the Russian Federation, openly mentioned one such option. Here is what he said:

“As for Kirby’s threats about possible Russian aircraft losses and the sending of Russian servicemen back to Russia in body bags, I would say that we know exactly where and how many “unofficial specialists” operate in Syria and in the Aleppo province and we know that they are involved in the operational planning and that they supervise the operations of the militants. Of course, one can continue to insist that they are unsuccessfully involved in trying to separate the al-Nusra terrorists from the “opposition” forces. But if somebody tries to implement these threats, it is by no means certain that these militants will have to time to get the hell out of there.”

This longish commentary showed up on the Internet site on Wednesday — and it comes to us courtesy of ‘aurora’.  It’s certainly a must read if you’re a serious student of the New Great Game — and it’s certainly worth reading even if you’re not.  Another link to it is here.  This is another article that will show up in Saturday’s missive if you don’t have the time for it now.

Vladimir Putin addressed State Duma October 5th, 2016

More than a hundred years ago, Petr Stolypin said when addressing the State Duma, “We must bring together all our efforts, all our obligations and rights to support Russia’s historically supreme right to be strong.” Whether we cite these words or put them in a different form, we must always assume that any nation and any country have exactly the same right, to be strong.

One more thing. We never use the word “strength” to imply superpower ambitions. We can never impose anything on anybody. Russia’s strength is within us, within our people, our traditions and culture, our economy, our huge territory and natural resources. It is in our defence power, of course. However, most importantly, our strength is in the unity of our people.

We must always remember that all the components of Russia’s strength that I have just mentioned are the most important conditions for preserving our statehood, independence and existence as a shared home for all the peoples living here.

I wish the State Duma members of the seventh convocation and the new Parliament leadership success in serving the Russian nation.

Thank you.

This speech to the Russian State Duma on Wednesday was posted on website — and is certainly worth reading if you have the interest.  I thank Roy Stephens for sharing it with us — and another link to this speech is here.

Central banks suppress gold to help China accumulate it, Rickards says

Fund manager and newsletter writer James Rickards writes this week that central banks are working together to suppress the price of gold while redistributing official gold reserves in preparation for the devaluation of government currencies — just what the economists and fund managers Paul Brodsky and Lee Quaintance wrote four years ago in analysis publicized by GATA.

Rickards writes: “Here’s the problem: If you took the lid off of gold, ended the price manipulation and let gold find its level, China would be left in the dust. It wouldn’t have enough gold relative to the other countries, and because the price of gold would be skyrocketing, they could never acquire it fast enough. They could never catch up. All the other countries would be on the bus while the Chinese would be off.

When you have this reset, and when everyone sits down around the table, China’s the second largest economy in the world. They have to be on the bus. That’s why the global effort has been to keep the lid on the price of gold through manipulation. I tell people that if I were running the manipulation, I’d be embarrassed, because it’s so obvious at this point.

Well, ‘da boyz’ aren’t all that embarrassed, because they’re doing the dirty in plain sight of everyone as I write this.  The link to this must read commentary is embedded in this GATA release from yesterday — and another link to it is here.  By the way, Jim has said all of this before, not only in his latest book, but also in the public domain awhile ago as well, so there’s nothing really new here.  But we could be close to crunch time now.

How long for gold market to be controlled by paper gold non-transactions? — Lawrie Williams

We somehow doubt the timing of the take down – designed to trigger stop-loss sales in today’s computer-dominated  trading systems, will have been coincidental.  Those that have the capability of so-doing, very definitely manipulate the markets  (not just in gold — and the other precious metals) to their advantage and can make huge financial killings on turns in the markets – see also Ted Butler’s damning commentary – The World’s Biggest Financial and Trading Scandal.  Thus the gold market – or any other traded market – is not a place for the unwary unless they can predict what the big money (or central banks and governments if one takes this to the extreme) may do to move the markets every which way.  And this latest move was probably predictable – it’s just getting the timing right which is the difficulty, but a week-long Chinese holiday when we feel that the new SGE gold pricing benchmark had been bringing a degree of stability to the markets provided perhaps an ideal opportunity for a take-down without any Chinese interference.

In case one thinks possible government or central bank influence is unlikely, one only has to listen to Larry Summers who has been a government economic adviser to various US administrations and is also one of Hillary Clinton’s major economic gurus.  He has been quoted as suggesting the Fed should consider buying stocks if there were signs of a major equities crash triggered by rising interest rates in order to allay general economic fears that a heavy decline in the stock markets might precipitate.  Given a rising gold price is generally seen as an indicator of currency weakness, how much more so might it be deemed necessary to influence the gold price as a currency protector as again a falling currency is also seen as a sign of economic weakness.  Governments feel the need to project the perception that all is going well – and there’s little doubt that although the Fed is supposedly an independent body it is almost certainly vulnerable to government influence.

While manipulation of markets may well be technically illegal, and is certainly immoral, there is unlikely to be any serious action taken against perpetrators given the market regulators are themselves part of the governmental and economic establishment.  Wall Street protects its own and a seemingly ever rising stock market is hugely profitable for those that control access to it.  In theory all this manipulation will eventually lead to a mega-bust – and perhaps a soaring gold price, but this kind of activity has been going on for years unchallenged by authority – plus ça change.

Well, dear reader, I couldn’t have put it any better myself.  I love it when Lawrie get his knickers in a twist!  And he gets a gold [and silver] star — and moves to the front of the class for this effort.  It appeared on the Sharps Pixley website yesterday — and certainly falls into the absolute must read category.  Another link to this commentary is here.


Here are the last two shots from my trip to the pond on Sunday afternoon.  The first is a small flock of lesser Canada geese already to head south at a moments notice.  The second shot is of a drake mallard well on his way into his new set of feathers that he replaces during the late summer/early fall.  His green head has yet to fill out completely — and the rufous-coloured breast feathers have a ways to go, too.  The ‘Click/Double-Click to Enlarge’ feature works wonders here.161007-2016-10-02-3


161007cartoon-8161007cartoon-4The WRAP

Why, of course, the people don’t want war. Why would some poor slob on a farm want to risk his life in a war when the best that he can get out of it is to come back to his farm in one piece? Naturally, the common people don’t want war; neither in Russia nor in England nor in America, nor for that matter in Germany. That is understood.

But, after all, it is the leaders of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy or a fascist dictatorship or a Parliament or a Communist dictatorship.

But, voice or no voice, the people can always be brought to the bidding of the leaders.  That is easy.  All you have to do is tell them they are being attacked and denounce the pacifists for lack of patriotism and exposing the country to danger.  It works the same way in any country. Reichsmarschall Hermann Göring…Nuremburg trials, 1946

It was another day where JPMorgan and the rest of their band of ‘merry men’ had the Managed Money traders on the run…pitching longs and going short, with JPMorgan et al picking up the other side of those trades for fun, profit and price management purposes.  We saw it on Tuesday, Wednesday — and again yesterday — and probably today as well.

They closed gold below its 200-day moving average — and came close to doing the same thing in silver.  Platinum has been below its 200-day moving average since the beginning of the week.

Here are the 6-month charts for all four precious metals, so you can see the damage for yourself.161007-6-month-gold


With the exception of palladium, the other three precious metals are now in oversold territory — and likely go further into it once trading is done today.

With the jobs report due out at 8:30 a.m. EDT this morning, plus the beginning of the 3-day IMF meeting, it’s a near certainty that that ‘da boyz’ will hammer the precious metals into the dirt once again.  It just remains to be seen how bad the damage will be — and what recovery occurs, or is allowed to occur, after the pounding is over.

And as I type this paragraph, the London open is less than ten minutes away — and I note that gold has been trading a few dollars either side of unchanged during the Far East trading session on their Friday — and is down $2.50 the ounce at the moment.  The same for silver, as it has been creeping lower since about 12:30 p.m. Tokyo time.  It’s down 7 cents currently.  Ditto for platinum and palladium — and both are down 3 dollars.

Net HFT gold volume is a bit over 27,000 contracts — and that number in silver is a fairly hefty 11,500 contracts.  The dollar index has been chopping higher since trading began at 6:00 p.m. in New York yesterday evening.  It made it up to around the 97.05 mark about 12:30 p.m. Japan Standard Time — and has been trading sideways since — and is up 33 basis points at the moment.

Today we get the new Commitment of Traders Report for positions held at the close of COMEX trading on Tuesday.  I’m certainly hoping that all of Tuesday’s trading data will be in it, but it’s a near certainty that it won’t.  But regardless of that, the reporting week has shown five consecutive new low closes, or new intraday lows in gold, so the gold number should be one for the record books, or close to it.  There will be a big improvement in silver as well, but how much remains to be seen, but it should be substantial.

Along with today’s COT Report, we also get the latest monthly Bank Participation Report — and as I mentioned the other day, it will allow Ted to recalibrate JPMorgan’s short position in silver.  I’ll have that number, plus everything else in my Saturday missive.

And as I post today’s offering on the website at 4:00 a.m. EDT, I see that despite the fact that the dollar index continues to move higher, all four precious metals have rallied since the London/Zurich open an hour ago.  Gold’s tiny rally was halted at the unchanged mark — and silver is only down only a penny at the moment.  Platinum is back to unchanged as well — and palladium is down a dollar.  An hour ago they were down 3 bucks each.

HFT gold volume is now up to a hair over 33,000 contracts — and that number in silver is sitting at 13,300 contracts.  And as I mentioned in the last paragraph, the dollar index continues to work its way quietly higher — and is up 39 basis points as I hit the ‘publish’ button.

And as I mentioned above, the world now awaits the job numbers at 8:30 a.m. EDT.

Enjoy your weekend — and I’ll see you here tomorrow.


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